Correlation Between Manila Bulletin and Robinsons Retail

Can any of the company-specific risk be diversified away by investing in both Manila Bulletin and Robinsons Retail at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Manila Bulletin and Robinsons Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Manila Bulletin Publishing and Robinsons Retail Holdings, you can compare the effects of market volatilities on Manila Bulletin and Robinsons Retail and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Manila Bulletin with a short position of Robinsons Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manila Bulletin and Robinsons Retail.

Diversification Opportunities for Manila Bulletin and Robinsons Retail

-0.4

Correlation Coefficient

Manila Bulletin  Robinsons Retail

Very good diversification

The 3 months correlation between Manila and Robinsons is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Manila Bulletin Publishing and Robinsons Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Retail Holdings and Manila Bulletin is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Manila Bulletin Publishing are associated (or correlated) with Robinsons Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Retail Holdings has no effect on the direction of Manila Bulletin i.e., Manila Bulletin and Robinsons Retail go up and down completely randomly.

Pair Corralation between Manila Bulletin and Robinsons Retail

Assuming the 90 days trading horizon Manila Bulletin Publishing is expected to generate 2.74 times more return on investment than Robinsons Retail. However, Manila Bulletin is 2.74 times more volatile than Robinsons Retail Holdings. It trades about 0.02 of its potential returns per unit of risk. Robinsons Retail Holdings is currently generating about 0.03 per unit of risk. If you would invest  20.00  in Manila Bulletin Publishing on April 24, 2025 and sell it today you would earn a total of  0.00  from holding Manila Bulletin Publishing or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	43.33%
Values	Daily Returns

Manila Bulletin Publishing  vs.  Robinsons Retail Holdings

Manila Bulletin Publ

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Manila Bulletin Publishing are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Manila Bulletin is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Robinsons Retail Holdings

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Robinsons Retail Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Robinsons Retail is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Manila Bulletin and Robinsons Retail

The main advantage of trading using opposite Manila Bulletin and Robinsons Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manila Bulletin position performs unexpectedly, Robinsons Retail can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Robinsons Retail will offset losses from the drop in Robinsons Retail's long position.

The idea behind Manila Bulletin Publishing and Robinsons Retail Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.