Correlation Between Cirtek Holdings and Integrated Micro
Can any of the company-specific risk be diversified away by investing in both Cirtek Holdings and Integrated Micro 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 Integrated Micro 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 Integrated Micro Electronics, you can compare the effects of market volatilities on Cirtek Holdings and Integrated Micro 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 Integrated Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirtek Holdings and Integrated Micro.
Diversification Opportunities for Cirtek Holdings and Integrated Micro
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cirtek and Integrated is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Cirtek Holdings Philippines and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele 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 Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of Cirtek Holdings i.e., Cirtek Holdings and Integrated Micro go up and down completely randomly.
Pair Corralation between Cirtek Holdings and Integrated Micro
Assuming the 90 days trading horizon Cirtek Holdings Philippines is expected to generate 0.22 times more return on investment than Integrated Micro. However, Cirtek Holdings Philippines is 4.48 times less risky than Integrated Micro. It trades about -0.04 of its potential returns per unit of risk. Integrated Micro Electronics is currently generating about -0.09 per unit of risk. If you would invest 4,930 in Cirtek Holdings Philippines on August 29, 2024 and sell it today you would lose (20.00) from holding Cirtek Holdings Philippines or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 71.43% |
| Values | Daily Returns |
Cirtek Holdings Philippines vs. Integrated Micro Electronics
Performance |
| Timeline |
| Cirtek Holdings Phil |
| Integrated Micro Ele |
Cirtek Holdings and Integrated Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cirtek Holdings and Integrated Micro
The main advantage of trading using opposite Cirtek Holdings and Integrated Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirtek Holdings position performs unexpectedly, Integrated Micro 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 Integrated Micro will offset losses from the drop in Integrated Micro's long position.| Cirtek Holdings vs. Semirara Mining Corp | Cirtek Holdings vs. Atlas Consolidated Mining | Cirtek Holdings vs. Jollibee Foods Corp | Cirtek Holdings vs. Metro Retail Stores |
| Integrated Micro vs. Allhome Corp | Integrated Micro vs. Jollibee Foods Corp | Integrated Micro vs. LFM Properties Corp | Integrated Micro vs. PXP Energy 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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