Correlation Between Pacificonline Systems and GT Capital
Can any of the company-specific risk be diversified away by investing in both Pacificonline Systems and GT Capital 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 Pacificonline Systems and GT Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacificonline Systems and GT Capital Holdings, you can compare the effects of market volatilities on Pacificonline Systems and GT Capital 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 Pacificonline Systems with a short position of GT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacificonline Systems and GT Capital.
Diversification Opportunities for Pacificonline Systems and GT Capital
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pacificonline and GTCAP is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Pacificonline Systems and GT Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GT Capital Holdings and Pacificonline Systems 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 Pacificonline Systems are associated (or correlated) with GT Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GT Capital Holdings has no effect on the direction of Pacificonline Systems i.e., Pacificonline Systems and GT Capital go up and down completely randomly.
Pair Corralation between Pacificonline Systems and GT Capital
Assuming the 90 days trading horizon Pacificonline Systems is expected to under-perform the GT Capital. In addition to that, Pacificonline Systems is 1.99 times more volatile than GT Capital Holdings. It trades about -0.24 of its total potential returns per unit of risk. GT Capital Holdings is currently generating about -0.19 per unit of volatility. If you would invest 72,000 in GT Capital Holdings on September 4, 2024 and sell it today you would lose (6,050) from holding GT Capital Holdings or give up 8.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pacificonline Systems vs. GT Capital Holdings
Performance |
| Timeline |
| Pacificonline Systems |
| GT Capital Holdings |
Pacificonline Systems and GT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacificonline Systems and GT Capital
The main advantage of trading using opposite Pacificonline Systems and GT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacificonline Systems position performs unexpectedly, GT Capital 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 GT Capital will offset losses from the drop in GT Capital's long position.| Pacificonline Systems vs. Figaro Coffee Group | Pacificonline Systems vs. GT Capital Holdings | Pacificonline Systems vs. Allhome Corp | Pacificonline Systems vs. LFM Properties Corp |
| GT Capital vs. Semirara Mining Corp | GT Capital vs. Globe Telecom | GT Capital vs. Rizal Commercial Banking | GT Capital vs. Sun Life Financial |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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