Correlation Between Robinsons Retail and GMA Network

Can any of the company-specific risk be diversified away by investing in both Robinsons Retail and GMA Network 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 Robinsons Retail and GMA Network into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Robinsons Retail Holdings and GMA Network, you can compare the effects of market volatilities on Robinsons Retail and GMA Network 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 Robinsons Retail with a short position of GMA Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and GMA Network.

Diversification Opportunities for Robinsons Retail and GMA Network

-0.37

Correlation Coefficient

Robinsons Retail  GMA Network

Very good diversification

The 3 months correlation between Robinsons and GMA is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and GMA Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMA Network and Robinsons Retail 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 Robinsons Retail Holdings are associated (or correlated) with GMA Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMA Network has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and GMA Network go up and down completely randomly.

Pair Corralation between Robinsons Retail and GMA Network

Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to generate 1.82 times more return on investment than GMA Network. However, Robinsons Retail is 1.82 times more volatile than GMA Network. It trades about 0.07 of its potential returns per unit of risk. GMA Network is currently generating about -0.22 per unit of risk. If you would invest  3,621  in Robinsons Retail Holdings on April 23, 2025 and sell it today you would earn a total of  229.00  from holding Robinsons Retail Holdings or generate 6.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Robinsons Retail Holdings  vs.  GMA Network

Robinsons Retail Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Robinsons Retail Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Robinsons Retail may actually be approaching a critical reversion point that can send shares even higher in August 2025.

GMA Network

Risk-Adjusted Performance

Very Weak

Over the last 90 days GMA Network has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Robinsons Retail and GMA Network

The main advantage of trading using opposite Robinsons Retail and GMA Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail position performs unexpectedly, GMA Network 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 GMA Network will offset losses from the drop in GMA Network's long position.

The idea behind Robinsons Retail Holdings and GMA Network 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.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.