Correlation Between Philex Mining and Cirtek Holdings
Can any of the company-specific risk be diversified away by investing in both Philex Mining 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 Philex Mining and Cirtek Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philex Mining Corp and Cirtek Holdings Philippines, you can compare the effects of market volatilities on Philex Mining 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 Philex Mining with a short position of Cirtek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and Cirtek Holdings.
Diversification Opportunities for Philex Mining and Cirtek Holdings
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Philex and Cirtek is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp 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 Philex Mining 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 Philex Mining Corp 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 Philex Mining i.e., Philex Mining and Cirtek Holdings go up and down completely randomly.
Pair Corralation between Philex Mining and Cirtek Holdings
If you would invest 0.00 in Cirtek Holdings Philippines on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Cirtek Holdings Philippines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Philex Mining Corp vs. Cirtek Holdings Philippines
Performance |
| Timeline |
| Philex Mining Corp |
| Cirtek Holdings Phil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Philex Mining and Cirtek Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and Cirtek Holdings
The main advantage of trading using opposite Philex Mining and Cirtek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining 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.| Philex Mining vs. Lepanto Consolidated Mining | Philex Mining vs. Converge Information Communications | Philex Mining vs. Semirara Mining Corp | Philex Mining vs. Atlas Consolidated Mining |
| Cirtek Holdings vs. Cebu Air Preferred | Cirtek Holdings vs. Metro Retail Stores | Cirtek Holdings vs. Transpacific Broadband Group | Cirtek Holdings vs. Manila Mining 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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