Correlation Between GT Capital and Cirtek Holdings
Can any of the company-specific risk be diversified away by investing in both GT Capital and Cirtek Holdings 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 Cirtek Holdings 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 Cirtek Holdings Philippines, you can compare the effects of market volatilities on GT Capital and Cirtek Holdings 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 Cirtek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and Cirtek Holdings.
Diversification Opportunities for GT Capital and Cirtek Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between GTCAP and Cirtek is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and Cirtek Holdings Philippines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cirtek Holdings Phil 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 Cirtek Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cirtek Holdings Phil has no effect on the direction of GT Capital i.e., GT Capital and Cirtek Holdings go up and down completely randomly.
Pair Corralation between GT Capital and Cirtek Holdings
Assuming the 90 days trading horizon GT Capital Holdings is expected to under-perform the Cirtek Holdings. But the stock apears to be less risky and, when comparing its historical volatility, GT Capital Holdings is 6.34 times less risky than Cirtek Holdings. The stock trades about -0.14 of its potential returns per unit of risk. The Cirtek Holdings Philippines is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 56.00 in Cirtek Holdings Philippines on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Cirtek Holdings Philippines or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
GT Capital Holdings vs. Cirtek Holdings Philippines
Performance |
| Timeline |
| GT Capital Holdings |
| Cirtek Holdings Phil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
GT Capital and Cirtek Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GT Capital and Cirtek Holdings
The main advantage of trading using opposite GT Capital and Cirtek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GT Capital position performs unexpectedly, Cirtek Holdings 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 Cirtek Holdings will offset losses from the drop in Cirtek Holdings' long position.| GT Capital vs. Manulife Financial Corp | GT Capital vs. Philippine Business Bank | GT Capital vs. House of Investments | GT Capital vs. Cebu Air Preferred |
| Cirtek Holdings vs. Integrated Micro Electronics | Cirtek Holdings vs. GT Capital Holdings | Cirtek Holdings vs. Allhome Corp | Cirtek Holdings 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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