Correlation Between PHINMA Corp and GT Capital
Can any of the company-specific risk be diversified away by investing in both PHINMA Corp 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 PHINMA Corp and GT Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHINMA Corp and GT Capital Holdings, you can compare the effects of market volatilities on PHINMA Corp 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 PHINMA Corp with a short position of GT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHINMA Corp and GT Capital.
Diversification Opportunities for PHINMA Corp and GT Capital
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PHINMA and GTCAP is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding PHINMA Corp 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 PHINMA Corp 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 PHINMA Corp 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 PHINMA Corp i.e., PHINMA Corp and GT Capital go up and down completely randomly.
Pair Corralation between PHINMA Corp and GT Capital
Assuming the 90 days trading horizon PHINMA Corp is expected to generate 0.88 times more return on investment than GT Capital. However, PHINMA Corp is 1.13 times less risky than GT Capital. It trades about -0.08 of its potential returns per unit of risk. GT Capital Holdings is currently generating about -0.21 per unit of risk. If you would invest 2,043 in PHINMA Corp on September 1, 2024 and sell it today you would lose (63.00) from holding PHINMA Corp or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
PHINMA Corp vs. GT Capital Holdings
Performance |
| Timeline |
| PHINMA Corp |
| GT Capital Holdings |
PHINMA Corp and GT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHINMA Corp and GT Capital
The main advantage of trading using opposite PHINMA Corp and GT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHINMA Corp 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.| PHINMA Corp vs. Cebu Air Preferred | PHINMA Corp vs. Apex Mining Co | PHINMA Corp vs. STI Education Systems | PHINMA Corp vs. Bank of the |
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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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