Correlation Between GT Capital and Allhome Corp
Can any of the company-specific risk be diversified away by investing in both GT Capital and Allhome Corp 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 Allhome Corp 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 Allhome Corp, you can compare the effects of market volatilities on GT Capital and Allhome Corp 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 Allhome Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT Capital and Allhome Corp.
Diversification Opportunities for GT Capital and Allhome Corp
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GTCAP and Allhome is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding GT Capital Holdings and Allhome Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allhome Corp 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 Allhome Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allhome Corp has no effect on the direction of GT Capital i.e., GT Capital and Allhome Corp go up and down completely randomly.
Pair Corralation between GT Capital and Allhome Corp
Assuming the 90 days trading horizon GT Capital Holdings is expected to generate 1.23 times more return on investment than Allhome Corp. However, GT Capital is 1.23 times more volatile than Allhome Corp. It trades about 0.22 of its potential returns per unit of risk. Allhome Corp is currently generating about -0.05 per unit of risk. If you would invest 47,000 in GT Capital Holdings on April 21, 2025 and sell it today you would earn a total of 18,300 from holding GT Capital Holdings or generate 38.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
GT Capital Holdings vs. Allhome Corp
Performance |
Timeline |
GT Capital Holdings |
Allhome Corp |
GT Capital and Allhome Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GT Capital and Allhome Corp
The main advantage of trading using opposite GT Capital and Allhome Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GT Capital position performs unexpectedly, Allhome Corp 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 Allhome Corp will offset losses from the drop in Allhome Corp's long position.GT Capital vs. Pacificonline Systems | GT Capital vs. Metro Retail Stores | GT Capital vs. Top Frontier Investment | GT Capital vs. Rizal Commercial Banking |
Allhome Corp vs. Semirara Mining Corp | Allhome Corp vs. Asia United Bank | Allhome Corp vs. National Reinsurance | Allhome Corp vs. COL Financial Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |