Correlation Between GT Capital and Altus Property
Can any of the company-specific risk be diversified away by investing in both GT Capital and Altus Property 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 Altus Property 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 Altus Property Ventures, you can compare the effects of market volatilities on GT Capital and Altus Property 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 Altus Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and Altus Property.
Diversification Opportunities for GT Capital and Altus Property
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between GTCAP and Altus is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and Altus Property Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altus Property Ventures 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 Altus Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altus Property Ventures has no effect on the direction of GT Capital i.e., GT Capital and Altus Property go up and down completely randomly.
Pair Corralation between GT Capital and Altus Property
Assuming the 90 days trading horizon GT Capital Holdings is expected to generate 0.65 times more return on investment than Altus Property. However, GT Capital Holdings is 1.54 times less risky than Altus Property. It trades about 0.03 of its potential returns per unit of risk. Altus Property Ventures is currently generating about -0.01 per unit of risk. If you would invest 61,705 in GT Capital Holdings on September 1, 2024 and sell it today you would earn a total of 3,795 from holding GT Capital Holdings or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.52% |
| Values | Daily Returns |
GT Capital Holdings vs. Altus Property Ventures
Performance |
| Timeline |
| GT Capital Holdings |
| Altus Property Ventures |
GT Capital and Altus Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GT Capital and Altus Property
The main advantage of trading using opposite GT Capital and Altus Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GT Capital position performs unexpectedly, Altus Property 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 Altus Property will offset losses from the drop in Altus Property's long position.| GT Capital vs. Rizal Commercial Banking | GT Capital vs. Metropolitan Bank Trust | GT Capital vs. SM Investments Corp | GT Capital vs. Security Bank Corp |
| Altus Property vs. Philippine Business Bank | Altus Property vs. Manulife Financial Corp | Altus Property vs. SM Investments Corp | Altus Property vs. Cebu Air Preferred |
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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