Correlation Between Manila Broadcasting and GT Capital
Can any of the company-specific risk be diversified away by investing in both Manila Broadcasting and GT Capital 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 Manila Broadcasting and GT Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manila Broadcasting Co and GT Capital Holdings, you can compare the effects of market volatilities on Manila Broadcasting and GT Capital 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 Manila Broadcasting with a short position of GT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manila Broadcasting and GT Capital.
Diversification Opportunities for Manila Broadcasting and GT Capital
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Manila and GTCAP is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Manila Broadcasting Co and GT Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GT Capital Holdings and Manila Broadcasting 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 Manila Broadcasting Co are associated (or correlated) with GT Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GT Capital Holdings has no effect on the direction of Manila Broadcasting i.e., Manila Broadcasting and GT Capital go up and down completely randomly.
Pair Corralation between Manila Broadcasting and GT Capital
Assuming the 90 days trading horizon Manila Broadcasting is expected to generate 1.66 times less return on investment than GT Capital. In addition to that, Manila Broadcasting is 2.76 times more volatile than GT Capital Holdings. It trades about 0.05 of its total potential returns per unit of risk. GT Capital Holdings is currently generating about 0.21 per unit of volatility. If you would invest 48,000 in GT Capital Holdings on April 23, 2025 and sell it today you would earn a total of 17,000 from holding GT Capital Holdings or generate 35.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 30.0% |
Values | Daily Returns |
Manila Broadcasting Co vs. GT Capital Holdings
Performance |
Timeline |
Manila Broadcasting |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
GT Capital Holdings |
Manila Broadcasting and GT Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Manila Broadcasting and GT Capital
The main advantage of trading using opposite Manila Broadcasting and GT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manila Broadcasting position performs unexpectedly, GT Capital 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 GT Capital will offset losses from the drop in GT Capital's long position.Manila Broadcasting vs. Philex Mining Corp | Manila Broadcasting vs. Semirara Mining Corp | Manila Broadcasting vs. Metro Retail Stores | Manila Broadcasting vs. Transpacific Broadband Group |
GT Capital vs. GT Capital Holdings | GT Capital vs. Filinvest REIT Corp | GT Capital vs. Cebu Air | GT Capital vs. Aboitiz Equity Ventures |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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