Correlation Between BDO Unibank and GT Capital
Can any of the company-specific risk be diversified away by investing in both BDO Unibank and GT Capital 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 BDO Unibank and GT Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BDO Unibank and GT Capital Holdings, you can compare the effects of market volatilities on BDO Unibank and GT Capital 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 BDO Unibank with a short position of GT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BDO Unibank and GT Capital.
Diversification Opportunities for BDO Unibank and GT Capital
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BDO and GTCAP is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding BDO Unibank and GT Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GT Capital Holdings and BDO Unibank 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 BDO Unibank are associated (or correlated) with GT Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GT Capital Holdings has no effect on the direction of BDO Unibank i.e., BDO Unibank and GT Capital go up and down completely randomly.
Pair Corralation between BDO Unibank and GT Capital
Assuming the 90 days trading horizon BDO Unibank is expected to generate 1.09 times more return on investment than GT Capital. However, BDO Unibank is 1.09 times more volatile than GT Capital Holdings. It trades about -0.08 of its potential returns per unit of risk. GT Capital Holdings is currently generating about -0.14 per unit of risk. If you would invest 16,591 in BDO Unibank on October 24, 2024 and sell it today you would lose (2,191) from holding BDO Unibank or give up 13.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.77% |
| Values | Daily Returns |
BDO Unibank vs. GT Capital Holdings
Performance |
| Timeline |
| BDO Unibank |
| GT Capital Holdings |
BDO Unibank and GT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BDO Unibank and GT Capital
The main advantage of trading using opposite BDO Unibank and GT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BDO Unibank position performs unexpectedly, GT Capital 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 GT Capital will offset losses from the drop in GT Capital's long position.| BDO Unibank vs. Metropolitan Bank Trust | BDO Unibank vs. Robinsons Retail Holdings | BDO Unibank vs. East West Banking | BDO Unibank vs. Rizal Commercial Banking |
| GT Capital vs. Concepcion Industrial Corp | GT Capital vs. BDO Unibank | GT Capital vs. Converge Information Communications | GT Capital vs. Metropolitan Bank Trust |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |