Correlation Between Philippine Savings and Global Ferronickel
Can any of the company-specific risk be diversified away by investing in both Philippine Savings and Global Ferronickel 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 Philippine Savings and Global Ferronickel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philippine Savings Bank and Global Ferronickel Holdings, you can compare the effects of market volatilities on Philippine Savings and Global Ferronickel 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 Philippine Savings with a short position of Global Ferronickel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philippine Savings and Global Ferronickel.
Diversification Opportunities for Philippine Savings and Global Ferronickel
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Philippine and Global is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Philippine Savings Bank and Global Ferronickel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Ferronickel and Philippine Savings 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 Philippine Savings Bank are associated (or correlated) with Global Ferronickel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Ferronickel has no effect on the direction of Philippine Savings i.e., Philippine Savings and Global Ferronickel go up and down completely randomly.
Pair Corralation between Philippine Savings and Global Ferronickel
Assuming the 90 days trading horizon Philippine Savings is expected to generate 5.73 times less return on investment than Global Ferronickel. But when comparing it to its historical volatility, Philippine Savings Bank is 5.6 times less risky than Global Ferronickel. It trades about 0.07 of its potential returns per unit of risk. Global Ferronickel Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 109.00 in Global Ferronickel Holdings on April 20, 2025 and sell it today you would earn a total of 19.00 from holding Global Ferronickel Holdings or generate 17.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Philippine Savings Bank vs. Global Ferronickel Holdings
Performance |
Timeline |
Philippine Savings Bank |
Global Ferronickel |
Philippine Savings and Global Ferronickel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Philippine Savings and Global Ferronickel
The main advantage of trading using opposite Philippine Savings and Global Ferronickel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philippine Savings position performs unexpectedly, Global Ferronickel 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 Global Ferronickel will offset losses from the drop in Global Ferronickel's long position.Philippine Savings vs. Suntrust Home Developers | Philippine Savings vs. National Reinsurance | Philippine Savings vs. Robinsons Retail Holdings | Philippine Savings vs. Union Bank of |
Global Ferronickel vs. Asia United Bank | Global Ferronickel vs. BDO Unibank | Global Ferronickel vs. Manulife Financial Corp | Global Ferronickel vs. National Reinsurance |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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