Correlation Between Globe Telecom and Harbor Star
Can any of the company-specific risk be diversified away by investing in both Globe Telecom and Harbor Star 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 Globe Telecom and Harbor Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globe Telecom and Harbor Star Shipping, you can compare the effects of market volatilities on Globe Telecom and Harbor Star 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 Globe Telecom with a short position of Harbor Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globe Telecom and Harbor Star.
Diversification Opportunities for Globe Telecom and Harbor Star
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globe and Harbor is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Globe Telecom and Harbor Star Shipping in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Star Shipping and Globe Telecom 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 Globe Telecom are associated (or correlated) with Harbor Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Star Shipping has no effect on the direction of Globe Telecom i.e., Globe Telecom and Harbor Star go up and down completely randomly.
Pair Corralation between Globe Telecom and Harbor Star
Assuming the 90 days trading horizon Globe Telecom is expected to generate 0.73 times more return on investment than Harbor Star. However, Globe Telecom is 1.37 times less risky than Harbor Star. It trades about 0.04 of its potential returns per unit of risk. Harbor Star Shipping is currently generating about -0.37 per unit of risk. If you would invest 207,540 in Globe Telecom on August 30, 2024 and sell it today you would earn a total of 2,460 from holding Globe Telecom or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globe Telecom vs. Harbor Star Shipping
Performance |
| Timeline |
| Globe Telecom |
| Harbor Star Shipping |
Globe Telecom and Harbor Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globe Telecom and Harbor Star
The main advantage of trading using opposite Globe Telecom and Harbor Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globe Telecom position performs unexpectedly, Harbor Star 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 Harbor Star will offset losses from the drop in Harbor Star's long position.| Globe Telecom vs. Rizal Commercial Banking | Globe Telecom vs. Atlas Consolidated Mining | Globe Telecom vs. Top Frontier Investment | Globe Telecom vs. Suntrust Home Developers |
| Harbor Star vs. Atlas Consolidated Mining | Harbor Star vs. Philex Mining Corp | Harbor Star vs. Converge Information Communications | Harbor Star vs. Globe Telecom |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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