Correlation Between Robinsons Retail and GT Capital
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail 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 Robinsons Retail and GT Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robinsons Retail Holdings and GT Capital Holdings, you can compare the effects of market volatilities on Robinsons Retail 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 Robinsons Retail with a short position of GT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and GT Capital.
Diversification Opportunities for Robinsons Retail and GT Capital
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Robinsons and GTCAP is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings 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 Robinsons Retail 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 Robinsons Retail Holdings 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 Robinsons Retail i.e., Robinsons Retail and GT Capital go up and down completely randomly.
Pair Corralation between Robinsons Retail and GT Capital
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to generate 0.7 times more return on investment than GT Capital. However, Robinsons Retail Holdings is 1.42 times less risky than GT Capital. It trades about -0.28 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 3,900 in Robinsons Retail Holdings on September 1, 2024 and sell it today you would lose (320.00) from holding Robinsons Retail Holdings or give up 8.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. GT Capital Holdings
Performance |
| Timeline |
| Robinsons Retail Holdings |
| GT Capital Holdings |
Robinsons Retail and GT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and GT Capital
The main advantage of trading using opposite Robinsons Retail and GT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail 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.| Robinsons Retail vs. Top Frontier Investment | Robinsons Retail vs. Manila Mining Corp | Robinsons Retail vs. Premiere Entertainment | Robinsons Retail vs. Philex Mining Corp |
| GT Capital vs. Rizal Commercial Banking | GT Capital vs. Metropolitan Bank Trust | GT Capital vs. SM Investments Corp | GT Capital vs. Security Bank 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |