Correlation Between Dizon Copper and GT Capital
Can any of the company-specific risk be diversified away by investing in both Dizon Copper 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 Dizon Copper and GT Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dizon Copper Silver and GT Capital Holdings, you can compare the effects of market volatilities on Dizon Copper 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 Dizon Copper with a short position of GT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dizon Copper and GT Capital.
Diversification Opportunities for Dizon Copper and GT Capital
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dizon and GTCAP is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dizon Copper Silver 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 Dizon Copper 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 Dizon Copper Silver 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 Dizon Copper i.e., Dizon Copper and GT Capital go up and down completely randomly.
Pair Corralation between Dizon Copper and GT Capital
Assuming the 90 days trading horizon Dizon Copper Silver is expected to under-perform the GT Capital. In addition to that, Dizon Copper is 1.35 times more volatile than GT Capital Holdings. It trades about -0.76 of its total potential returns per unit of risk. GT Capital Holdings is currently generating about -0.2 per unit of volatility. If you would invest 72,800 in GT Capital Holdings on August 29, 2024 and sell it today you would lose (6,650) from holding GT Capital Holdings or give up 9.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 27.27% |
| Values | Daily Returns |
Dizon Copper Silver vs. GT Capital Holdings
Performance |
| Timeline |
| Dizon Copper Silver |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| GT Capital Holdings |
Dizon Copper and GT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dizon Copper and GT Capital
The main advantage of trading using opposite Dizon Copper and GT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dizon Copper 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.| Dizon Copper vs. Asia United Bank | Dizon Copper vs. Philippine Savings Bank | Dizon Copper vs. Robinsons Retail Holdings | Dizon Copper vs. Top Frontier Investment |
| GT Capital vs. Alliance Select Foods | GT Capital vs. Prime Media Holdings | GT Capital vs. Manila Mining Corp | GT Capital vs. STI Education Systems |
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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