Correlation Between GT Capital and Dizon Copper

Can any of the company-specific risk be diversified away by investing in both GT Capital and Dizon Copper 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 GT Capital and Dizon Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GT Capital Holdings and Dizon Copper Silver, you can compare the effects of market volatilities on GT Capital and Dizon Copper 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 GT Capital with a short position of Dizon Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and Dizon Copper.

Diversification Opportunities for GT Capital and Dizon Copper

0.64

Correlation Coefficient

GT Capital  Dizon Copper

Poor diversification

The 3 months correlation between GTCAP and Dizon is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and Dizon Copper Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dizon Copper Silver and GT Capital 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 GT Capital Holdings are associated (or correlated) with Dizon Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dizon Copper Silver has no effect on the direction of GT Capital i.e., GT Capital and Dizon Copper go up and down completely randomly.

Pair Corralation between GT Capital and Dizon Copper

Assuming the 90 days trading horizon GT Capital Holdings is expected to under-perform the Dizon Copper. But the stock apears to be less risky and, when comparing its historical volatility, GT Capital Holdings is 2.78 times less risky than Dizon Copper. The stock trades about -0.17 of its potential returns per unit of risk. The Dizon Copper Silver is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  206.00  in Dizon Copper Silver on December 30, 2024 and sell it today you would earn a total of  9.00  from holding Dizon Copper Silver or generate 4.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	29.03%
Values	Daily Returns

GT Capital Holdings  vs.  Dizon Copper Silver

GT Capital Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days GT Capital Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Dizon Copper Silver

Risk-Adjusted Performance

Modest

Over the last 90 days Dizon Copper Silver has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather uncertain technical and fundamental indicators, Dizon Copper exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GT Capital and Dizon Copper

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

The idea behind GT Capital Holdings and Dizon Copper Silver 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.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.