Correlation Between Axelum Resources and Cirtek Holdings

Can any of the company-specific risk be diversified away by investing in both Axelum Resources and Cirtek Holdings 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 Axelum Resources and Cirtek Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Axelum Resources Corp and Cirtek Holdings Philippines, you can compare the effects of market volatilities on Axelum Resources and Cirtek Holdings 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 Axelum Resources with a short position of Cirtek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axelum Resources and Cirtek Holdings.

Diversification Opportunities for Axelum Resources and Cirtek Holdings

0.39

Correlation Coefficient

Axelum Resources  Cirtek Holdings

Weak diversification

The 3 months correlation between Axelum and Cirtek is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Axelum Resources Corp and Cirtek Holdings Philippines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cirtek Holdings Phil and Axelum Resources 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 Axelum Resources Corp are associated (or correlated) with Cirtek Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cirtek Holdings Phil has no effect on the direction of Axelum Resources i.e., Axelum Resources and Cirtek Holdings go up and down completely randomly.

Pair Corralation between Axelum Resources and Cirtek Holdings

If you would invest  208.00  in Axelum Resources Corp on October 10, 2024 and sell it today you would earn a total of  12.00  from holding Axelum Resources Corp or generate 5.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Axelum Resources Corp  vs.  Cirtek Holdings Philippines

Axelum Resources Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Axelum Resources Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Axelum Resources may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Cirtek Holdings Phil

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Cirtek Holdings Philippines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively weak fundamental drivers, Cirtek Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Axelum Resources and Cirtek Holdings

The main advantage of trading using opposite Axelum Resources and Cirtek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axelum Resources position performs unexpectedly, Cirtek Holdings 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 Cirtek Holdings will offset losses from the drop in Cirtek Holdings' long position.

The idea behind Axelum Resources Corp and Cirtek Holdings Philippines pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..