Correlation Between GT Capital and Suntrust Home
Can any of the company-specific risk be diversified away by investing in both GT Capital and Suntrust Home 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 Suntrust Home 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 Suntrust Home Developers, you can compare the effects of market volatilities on GT Capital and Suntrust Home 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 Suntrust Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and Suntrust Home.
Diversification Opportunities for GT Capital and Suntrust Home
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GTCAP and Suntrust is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and Suntrust Home Developers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntrust Home Developers 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 Suntrust Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntrust Home Developers has no effect on the direction of GT Capital i.e., GT Capital and Suntrust Home go up and down completely randomly.
Pair Corralation between GT Capital and Suntrust Home
Assuming the 90 days trading horizon GT Capital Holdings is expected to generate 0.55 times more return on investment than Suntrust Home. However, GT Capital Holdings is 1.82 times less risky than Suntrust Home. It trades about 0.05 of its potential returns per unit of risk. Suntrust Home Developers is currently generating about 0.0 per unit of risk. If you would invest 47,861 in GT Capital Holdings on August 31, 2024 and sell it today you would earn a total of 16,139 from holding GT Capital Holdings or generate 33.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.34% |
| Values | Daily Returns |
GT Capital Holdings vs. Suntrust Home Developers
Performance |
| Timeline |
| GT Capital Holdings |
| Suntrust Home Developers |
GT Capital and Suntrust Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GT Capital and Suntrust Home
The main advantage of trading using opposite GT Capital and Suntrust Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GT Capital position performs unexpectedly, Suntrust Home 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 Suntrust Home will offset losses from the drop in Suntrust Home's long position.| GT Capital vs. Manulife Financial Corp | GT Capital vs. Transpacific Broadband Group | GT Capital vs. Premiere Entertainment | GT Capital vs. Metro Retail Stores |
| Suntrust Home vs. ATN Holdings | Suntrust Home vs. GT Capital Holdings | Suntrust Home vs. Allhome Corp | Suntrust Home 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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