Correlation Between Cirtek Holdings and Robinsons Retail
Can any of the company-specific risk be diversified away by investing in both Cirtek Holdings and Robinsons Retail 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 Robinsons Retail 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 Robinsons Retail Holdings, you can compare the effects of market volatilities on Cirtek Holdings and Robinsons Retail 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 Robinsons Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirtek Holdings and Robinsons Retail.
Diversification Opportunities for Cirtek Holdings and Robinsons Retail
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cirtek and Robinsons is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cirtek Holdings Philippines and Robinsons Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Retail Holdings 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 Robinsons Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Retail Holdings has no effect on the direction of Cirtek Holdings i.e., Cirtek Holdings and Robinsons Retail go up and down completely randomly.
Pair Corralation between Cirtek Holdings and Robinsons Retail
Assuming the 90 days trading horizon Cirtek Holdings Philippines is expected to generate 12.73 times more return on investment than Robinsons Retail. However, Cirtek Holdings is 12.73 times more volatile than Robinsons Retail Holdings. It trades about 0.27 of its potential returns per unit of risk. Robinsons Retail Holdings is currently generating about -0.18 per unit of risk. If you would invest 56.00 in Cirtek Holdings Philippines on September 13, 2024 and sell it today you would earn a total of 14.00 from holding Cirtek Holdings Philippines or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.82% |
| Values | Daily Returns |
Cirtek Holdings Philippines vs. Robinsons Retail Holdings
Performance |
| Timeline |
| Cirtek Holdings Phil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Robinsons Retail Holdings |
Cirtek Holdings and Robinsons Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cirtek Holdings and Robinsons Retail
The main advantage of trading using opposite Cirtek Holdings and Robinsons Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirtek Holdings position performs unexpectedly, Robinsons Retail 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 Robinsons Retail will offset losses from the drop in Robinsons Retail's long position.| Cirtek Holdings vs. Integrated Micro Electronics | Cirtek Holdings vs. GT Capital Holdings | Cirtek Holdings vs. Allhome Corp | Cirtek Holdings vs. Jollibee Foods Corp |
| Robinsons Retail vs. Megawide Construction Corp | Robinsons Retail vs. Metro Retail Stores | Robinsons Retail vs. Jollibee Foods Corp | Robinsons Retail vs. Transpacific Broadband Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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