Correlation Between GT Capital and AllDay Marts
Can any of the company-specific risk be diversified away by investing in both GT Capital and AllDay Marts 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 GT Capital and AllDay Marts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GT Capital Holdings and AllDay Marts, you can compare the effects of market volatilities on GT Capital and AllDay Marts 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 GT Capital with a short position of AllDay Marts. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and AllDay Marts.
Diversification Opportunities for GT Capital and AllDay Marts
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between GTCAP and AllDay is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and AllDay Marts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllDay Marts and GT Capital 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 GT Capital Holdings are associated (or correlated) with AllDay Marts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllDay Marts has no effect on the direction of GT Capital i.e., GT Capital and AllDay Marts go up and down completely randomly.
Pair Corralation between GT Capital and AllDay Marts
Assuming the 90 days trading horizon GT Capital Holdings is expected to generate 0.78 times more return on investment than AllDay Marts. However, GT Capital Holdings is 1.28 times less risky than AllDay Marts. It trades about 0.05 of its potential returns per unit of risk. AllDay Marts is currently generating about -0.01 per unit of risk. If you would invest 59,266 in GT Capital Holdings on September 3, 2024 and sell it today you would earn a total of 6,234 from holding GT Capital Holdings or generate 10.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GT Capital Holdings vs. AllDay Marts
Performance |
| Timeline |
| GT Capital Holdings |
| AllDay Marts |
GT Capital and AllDay Marts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GT Capital and AllDay Marts
The main advantage of trading using opposite GT Capital and AllDay Marts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GT Capital position performs unexpectedly, AllDay Marts 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 AllDay Marts will offset losses from the drop in AllDay Marts' long position.| GT Capital vs. Metropolitan Bank Trust | GT Capital vs. Union Bank of | GT Capital vs. Semirara Mining Corp | GT Capital vs. Concepcion Industrial Corp |
| AllDay Marts vs. Puregold Price Club | AllDay Marts vs. Cosco Capital | AllDay Marts vs. Keepers Holdings | AllDay Marts vs. AgriNurture |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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