Correlation Between Robinsons Retail and Cirtek Holdings
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail 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 Robinsons Retail and Cirtek Holdings 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 Cirtek Holdings Philippines, you can compare the effects of market volatilities on Robinsons Retail 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 Robinsons Retail with a short position of Cirtek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and Cirtek Holdings.
Diversification Opportunities for Robinsons Retail and Cirtek Holdings
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Robinsons and Cirtek is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail 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 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 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 Robinsons Retail i.e., Robinsons Retail and Cirtek Holdings go up and down completely randomly.
Pair Corralation between Robinsons Retail and Cirtek Holdings
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to generate 0.51 times more return on investment than Cirtek Holdings. However, Robinsons Retail Holdings is 1.96 times less risky than Cirtek Holdings. It trades about -0.28 of its potential returns per unit of risk. Cirtek Holdings Philippines is currently generating about -0.32 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 | Very Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. Cirtek Holdings Philippines
Performance |
| Timeline |
| Robinsons Retail Holdings |
| Cirtek Holdings Phil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Robinsons Retail and Cirtek Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and Cirtek Holdings
The main advantage of trading using opposite Robinsons Retail and Cirtek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail 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.| Robinsons Retail vs. Top Frontier Investment | Robinsons Retail vs. Manila Mining Corp | Robinsons Retail vs. Premiere Entertainment | Robinsons Retail vs. Philex Mining Corp |
| Cirtek Holdings vs. Philex Mining Corp | Cirtek Holdings vs. Transpacific Broadband Group | Cirtek Holdings vs. Integrated Micro Electronics | Cirtek Holdings vs. Top Frontier Investment |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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