Correlation Between THE PHILIPPINE and Coreshares Index
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By analyzing existing cross correlation between THE PHILIPPINE STOCK and Coreshares Index Tracker, you can compare the effects of market volatilities on THE PHILIPPINE and Coreshares Index 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 THE PHILIPPINE with a short position of Coreshares Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of THE PHILIPPINE and Coreshares Index.
Diversification Opportunities for THE PHILIPPINE and Coreshares Index
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between THE and Coreshares is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding THE PHILIPPINE STOCK and Coreshares Index Tracker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coreshares Index Tracker and THE PHILIPPINE 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 THE PHILIPPINE STOCK are associated (or correlated) with Coreshares Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coreshares Index Tracker has no effect on the direction of THE PHILIPPINE i.e., THE PHILIPPINE and Coreshares Index go up and down completely randomly.
Pair Corralation between THE PHILIPPINE and Coreshares Index
Assuming the 90 days trading horizon THE PHILIPPINE STOCK is expected to under-perform the Coreshares Index. In addition to that, THE PHILIPPINE is 1.06 times more volatile than Coreshares Index Tracker. It trades about -0.17 of its total potential returns per unit of risk. Coreshares Index Tracker is currently generating about -0.01 per unit of volatility. If you would invest 105,000 in Coreshares Index Tracker on February 1, 2024 and sell it today you would lose (300.00) from holding Coreshares Index Tracker or give up 0.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
THE PHILIPPINE STOCK vs. Coreshares Index Tracker
Performance |
Timeline |
THE PHILIPPINE and Coreshares Index Volatility Contrast
Predicted Return Density |
Returns |
THE PHILIPPINE STOCK
Pair trading matchups for THE PHILIPPINE
Coreshares Index Tracker
Pair trading matchups for Coreshares Index
Pair Trading with THE PHILIPPINE and Coreshares Index
The main advantage of trading using opposite THE PHILIPPINE and Coreshares Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THE PHILIPPINE position performs unexpectedly, Coreshares Index 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 Coreshares Index will offset losses from the drop in Coreshares Index's long position.THE PHILIPPINE vs. Philippine Business Bank | THE PHILIPPINE vs. Security Bank Corp | THE PHILIPPINE vs. China Banking Corp | THE PHILIPPINE vs. Philex Mining Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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