Correlation Between Philippine National and Cirtek Holdings
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
-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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 79.66% |
Values | Daily Returns |
Philippine National Bank vs. Cirtek Holdings Philippines
Performance |
Timeline |
Philippine National Bank |
Cirtek Holdings Phil |
Philippine National and Cirtek Holdings Volatility Contrast
Predicted Return Density |
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.Philippine National vs. Semirara Mining Corp | ||
Philippine National vs. COL Financial Group | ||
Philippine National vs. Union Bank of | ||
Philippine National vs. Security Bank Corp |
Cirtek Holdings vs. Dizon Copper Silver | ||
Cirtek Holdings vs. First Abacus Financial | ||
Cirtek Holdings vs. GT Capital Holdings | ||
Cirtek Holdings vs. Allhome 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |