Correlation Between Cirtek Holdings and International Container
Can any of the company-specific risk be diversified away by investing in both Cirtek Holdings and International Container 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 International Container 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 International Container Terminal, you can compare the effects of market volatilities on Cirtek Holdings and International Container 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 International Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirtek Holdings and International Container.
Diversification Opportunities for Cirtek Holdings and International Container
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cirtek and International is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cirtek Holdings Philippines and International Container Termin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Container 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 International Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Container has no effect on the direction of Cirtek Holdings i.e., Cirtek Holdings and International Container go up and down completely randomly.
Pair Corralation between Cirtek Holdings and International Container
Assuming the 90 days trading horizon Cirtek Holdings Philippines is expected to generate 1.13 times more return on investment than International Container. However, Cirtek Holdings is 1.13 times more volatile than International Container Terminal. It trades about 0.0 of its potential returns per unit of risk. International Container Terminal is currently generating about -0.05 per unit of risk. If you would invest 4,940 in Cirtek Holdings Philippines on November 18, 2024 and sell it today you would lose (100.00) from holding Cirtek Holdings Philippines or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.0% |
| Values | Daily Returns |
Cirtek Holdings Philippines vs. International Container Termin
Performance |
| Timeline |
| Cirtek Holdings Phil |
| International Container |
Cirtek Holdings and International Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cirtek Holdings and International Container
The main advantage of trading using opposite Cirtek Holdings and International Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirtek Holdings position performs unexpectedly, International Container 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 International Container will offset losses from the drop in International Container's long position.| Cirtek Holdings vs. Integrated Micro Electronics | Cirtek Holdings vs. Cirtek Holdings Philippines | Cirtek Holdings vs. First Abacus Financial | Cirtek Holdings vs. Allhome Corp |
| International Container vs. Globe Telecom | International Container vs. Vitarich Corp | International Container vs. Apex Mining Co | International Container vs. Bright Kindle Resources |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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