Correlation Between GT Capital and House Of
Can any of the company-specific risk be diversified away by investing in both GT Capital and House Of 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 House Of 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 House of Investments, you can compare the effects of market volatilities on GT Capital and House Of 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 House Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and House Of.
Diversification Opportunities for GT Capital and House Of
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between GTCAP and House is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and House of Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on House of Investments 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 House Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of House of Investments has no effect on the direction of GT Capital i.e., GT Capital and House Of go up and down completely randomly.
Pair Corralation between GT Capital and House Of
Assuming the 90 days trading horizon GT Capital is expected to generate 1.02 times less return on investment than House Of. But when comparing it to its historical volatility, GT Capital Holdings is 2.32 times less risky than House Of. It trades about 0.05 of its potential returns per unit of risk. House of Investments is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 349.00 in House of Investments on September 14, 2024 and sell it today you would earn a total of 8.00 from holding House of Investments or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.41% |
| Values | Daily Returns |
GT Capital Holdings vs. House of Investments
Performance |
| Timeline |
| GT Capital Holdings |
| House of Investments |
GT Capital and House Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GT Capital and House Of
The main advantage of trading using opposite GT Capital and House Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GT Capital position performs unexpectedly, House Of 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 House Of will offset losses from the drop in House Of's long position.| GT Capital vs. Premiere Entertainment | GT Capital vs. Metropolitan Bank Trust | GT Capital vs. Figaro Coffee Group | GT Capital vs. Philippine Business Bank |
| House Of vs. EEI Corp | House Of vs. GT Capital Holdings | House Of vs. Allhome Corp | House Of vs. Jollibee Foods Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |