Correlation Between GT Capital and Easycall Communications
Can any of the company-specific risk be diversified away by investing in both GT Capital and Easycall Communications 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 Easycall Communications 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 Easycall Communications Philippines, you can compare the effects of market volatilities on GT Capital and Easycall Communications 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 Easycall Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and Easycall Communications.
Diversification Opportunities for GT Capital and Easycall Communications
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GTCAP and Easycall is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and Easycall Communications Philip in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easycall Communications 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 Easycall Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easycall Communications has no effect on the direction of GT Capital i.e., GT Capital and Easycall Communications go up and down completely randomly.
Pair Corralation between GT Capital and Easycall Communications
Assuming the 90 days trading horizon GT Capital Holdings is expected to generate 0.92 times more return on investment than Easycall Communications. However, GT Capital Holdings is 1.08 times less risky than Easycall Communications. It trades about -0.17 of its potential returns per unit of risk. Easycall Communications Philippines is currently generating about -0.5 per unit of risk. If you would invest 53,000 in GT Capital Holdings on December 5, 2024 and sell it today you would lose (3,200) from holding GT Capital Holdings or give up 6.04% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 21.74% |
Values | Daily Returns |
GT Capital Holdings vs. Easycall Communications Philip
Performance |
Timeline |
GT Capital Holdings |
Easycall Communications |
Risk-Adjusted Performance
Good
Weak | Strong |
GT Capital and Easycall Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GT Capital and Easycall Communications
The main advantage of trading using opposite GT Capital and Easycall Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GT Capital position performs unexpectedly, Easycall Communications 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 Easycall Communications will offset losses from the drop in Easycall Communications' long position.GT Capital vs. Century Pacific Food | GT Capital vs. Philippine Savings Bank | GT Capital vs. Converge Information Communications | GT Capital vs. National Reinsurance |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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