Correlation Between Cirtek Holdings and Philex Mining
Can any of the company-specific risk be diversified away by investing in both Cirtek Holdings and Philex Mining 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 Cirtek Holdings and Philex Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cirtek Holdings Philippines and Philex Mining Corp, you can compare the effects of market volatilities on Cirtek Holdings and Philex Mining 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 Cirtek Holdings with a short position of Philex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirtek Holdings and Philex Mining.
Diversification Opportunities for Cirtek Holdings and Philex Mining
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cirtek and Philex is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Cirtek Holdings Philippines and Philex Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philex Mining Corp and Cirtek Holdings 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 Cirtek Holdings Philippines are associated (or correlated) with Philex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philex Mining Corp has no effect on the direction of Cirtek Holdings i.e., Cirtek Holdings and Philex Mining go up and down completely randomly.
Pair Corralation between Cirtek Holdings and Philex Mining
Assuming the 90 days trading horizon Cirtek Holdings Philippines is expected to under-perform the Philex Mining. In addition to that, Cirtek Holdings is 1.31 times more volatile than Philex Mining Corp. It trades about -0.32 of its total potential returns per unit of risk. Philex Mining Corp is currently generating about -0.37 per unit of volatility. If you would invest 330.00 in Philex Mining Corp on September 1, 2024 and sell it today you would lose (52.00) from holding Philex Mining Corp or give up 15.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
Cirtek Holdings Philippines vs. Philex Mining Corp
Performance |
| Timeline |
| Cirtek Holdings Phil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Philex Mining Corp |
Cirtek Holdings and Philex Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cirtek Holdings and Philex Mining
The main advantage of trading using opposite Cirtek Holdings and Philex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirtek Holdings position performs unexpectedly, Philex Mining 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 Philex Mining will offset losses from the drop in Philex Mining's long position.| Cirtek Holdings vs. Philex Mining Corp | Cirtek Holdings vs. Transpacific Broadband Group | Cirtek Holdings vs. Integrated Micro Electronics | Cirtek Holdings vs. Top Frontier Investment |
| Philex Mining vs. Figaro Coffee Group | Philex Mining vs. Lepanto Consolidated Mining | Philex Mining vs. Cebu Air Preferred | Philex Mining vs. SM Investments 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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