Correlation Between GT Capital and STI Education
Can any of the company-specific risk be diversified away by investing in both GT Capital and STI Education 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 STI Education 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 STI Education Systems, you can compare the effects of market volatilities on GT Capital and STI Education 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 STI Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and STI Education.
Diversification Opportunities for GT Capital and STI Education
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GTCAP and STI is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and STI Education Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STI Education Systems 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 STI Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STI Education Systems has no effect on the direction of GT Capital i.e., GT Capital and STI Education go up and down completely randomly.
Pair Corralation between GT Capital and STI Education
Assuming the 90 days trading horizon GT Capital Holdings is expected to under-perform the STI Education. In addition to that, GT Capital is 1.17 times more volatile than STI Education Systems. It trades about -0.16 of its total potential returns per unit of risk. STI Education Systems is currently generating about 0.13 per unit of volatility. If you would invest 139.00 in STI Education Systems on December 4, 2024 and sell it today you would earn a total of 5.00 from holding STI Education Systems or generate 3.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GT Capital Holdings vs. STI Education Systems
Performance |
| Timeline |
| GT Capital Holdings |
| STI Education Systems |
GT Capital and STI Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GT Capital and STI Education
The main advantage of trading using opposite GT Capital and STI Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GT Capital position performs unexpectedly, STI Education 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 STI Education will offset losses from the drop in STI Education's long position.| GT Capital vs. Atlas Consolidated Mining | GT Capital vs. Converge Information Communications | GT Capital vs. SM Investments Corp | GT Capital vs. Philex Mining Corp |
| STI Education vs. Transpacific Broadband Group | STI Education vs. Converge Information Communications | STI Education vs. Rizal Commercial Banking | STI Education vs. Premiere Entertainment |
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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