Correlation Between Cirtek Holdings and Security Bank
Can any of the company-specific risk be diversified away by investing in both Cirtek Holdings and Security Bank 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 Security Bank 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 Security Bank Corp, you can compare the effects of market volatilities on Cirtek Holdings and Security Bank 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 Security Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirtek Holdings and Security Bank.
Diversification Opportunities for Cirtek Holdings and Security Bank
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cirtek and Security is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cirtek Holdings Philippines and Security Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Security Bank 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 Security Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Security Bank Corp has no effect on the direction of Cirtek Holdings i.e., Cirtek Holdings and Security Bank go up and down completely randomly.
Pair Corralation between Cirtek Holdings and Security Bank
Assuming the 90 days trading horizon Cirtek Holdings Philippines is expected to under-perform the Security Bank. In addition to that, Cirtek Holdings is 1.09 times more volatile than Security Bank Corp. It trades about -0.32 of its total potential returns per unit of risk. Security Bank Corp is currently generating about -0.06 per unit of volatility. If you would invest 9,044 in Security Bank Corp on September 1, 2024 and sell it today you would lose (364.00) from holding Security Bank Corp or give up 4.02% 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. Security Bank Corp
Performance |
| Timeline |
| Cirtek Holdings Phil |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Security Bank Corp |
Cirtek Holdings and Security Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cirtek Holdings and Security Bank
The main advantage of trading using opposite Cirtek Holdings and Security Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirtek Holdings position performs unexpectedly, Security Bank 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 Security Bank will offset losses from the drop in Security Bank'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 |
| Security Bank vs. Metropolitan Bank Trust | Security Bank vs. Philippine National Bank | Security Bank vs. Asia United Bank | Security Bank vs. Philippine Savings Bank |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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