Correlation Between Philippine National and Cirtek Holdings

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Can any of the company-specific risk be diversified away by investing in both Philippine National 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 Philippine National and Cirtek Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philippine National Bank and Cirtek Holdings Philippines, you can compare the effects of market volatilities on Philippine National 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 Philippine National with a short position of Cirtek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philippine National and Cirtek Holdings.

Diversification Opportunities for Philippine National and Cirtek Holdings

PhilippineCirtekDiversified AwayPhilippineCirtekDiversified Away100%
-0.58
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Philippine and Cirtek is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Philippine National Bank 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 Philippine National 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 Philippine National Bank 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 Philippine National i.e., Philippine National and Cirtek Holdings go up and down completely randomly.

Pair Corralation between Philippine National and Cirtek Holdings

Assuming the 90 days trading horizon Philippine National Bank is expected to generate 0.5 times more return on investment than Cirtek Holdings. However, Philippine National Bank is 1.98 times less risky than Cirtek Holdings. It trades about 0.08 of its potential returns per unit of risk. Cirtek Holdings Philippines is currently generating about 0.01 per unit of risk. If you would invest  2,710  in Philippine National Bank on October 31, 2024 and sell it today you would earn a total of  180.00  from holding Philippine National Bank or generate 6.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy79.66%
ValuesDaily Returns

Philippine National Bank  vs.  Cirtek Holdings Philippines

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-50510
JavaScript chart by amCharts 3.21.15PNB TCB2D
       Timeline  
Philippine National Bank 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Philippine National Bank are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Philippine National may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan2627282930
Cirtek Holdings Phil 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
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 invariable fundamental drivers, Cirtek Holdings is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan38404244464850

Philippine National and Cirtek Holdings Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.52-3.39-2.25-1.120.01891.152.313.484.65 0.050.100.15
JavaScript chart by amCharts 3.21.15PNB TCB2D
       Returns  

Pair Trading with Philippine National and Cirtek Holdings

The main advantage of trading using opposite Philippine National and Cirtek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philippine National 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 Philippine National Bank 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.
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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