Correlation Between Integrated Micro and Cirtek Holdings
Can any of the company-specific risk be diversified away by investing in both Integrated Micro 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 Integrated Micro and Cirtek Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Micro Electronics and Cirtek Holdings Philippines, you can compare the effects of market volatilities on Integrated Micro 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 Integrated Micro with a short position of Cirtek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Micro and Cirtek Holdings.
Diversification Opportunities for Integrated Micro and Cirtek Holdings
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integrated and Cirtek is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Micro Electronics 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 Integrated Micro 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 Integrated Micro Electronics 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 Integrated Micro i.e., Integrated Micro and Cirtek Holdings go up and down completely randomly.
Pair Corralation between Integrated Micro and Cirtek Holdings
Assuming the 90 days trading horizon Integrated Micro Electronics is expected to under-perform the Cirtek Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Integrated Micro Electronics is 1.8 times less risky than Cirtek Holdings. The stock trades about -0.02 of its potential returns per unit of risk. The Cirtek Holdings Philippines is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 985.00 in Cirtek Holdings Philippines on April 24, 2025 and sell it today you would earn a total of 59.00 from holding Cirtek Holdings Philippines or generate 5.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 90.0% |
Values | Daily Returns |
Integrated Micro Electronics vs. Cirtek Holdings Philippines
Performance |
Timeline |
Integrated Micro Ele |
Cirtek Holdings Phil |
Integrated Micro and Cirtek Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Integrated Micro and Cirtek Holdings
The main advantage of trading using opposite Integrated Micro and Cirtek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Micro 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.Integrated Micro vs. Philippine Business Bank | Integrated Micro vs. Jollibee Foods Corp | Integrated Micro vs. United Paragon Mining | Integrated Micro vs. Manila Bulletin Publishing |
Cirtek Holdings vs. Converge Information Communications | Cirtek Holdings vs. SM Investments Corp | Cirtek Holdings vs. Concepcion Industrial Corp | Cirtek Holdings vs. Semirara Mining 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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