Correlation Between Semirara Mining and Cirtek Holdings

Can any of the company-specific risk be diversified away by investing in both Semirara Mining 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 Semirara Mining and Cirtek Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Semirara Mining Corp and Cirtek Holdings Philippines, you can compare the effects of market volatilities on Semirara Mining 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 Semirara Mining with a short position of Cirtek Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Semirara Mining and Cirtek Holdings.

Diversification Opportunities for Semirara Mining and Cirtek Holdings

-0.1

Correlation Coefficient

Semirara Mining  Cirtek Holdings

Good diversification

The 3 months correlation between Semirara and Cirtek is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Semirara Mining Corp 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 Semirara Mining 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 Semirara Mining Corp 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 Semirara Mining i.e., Semirara Mining and Cirtek Holdings go up and down completely randomly.

Pair Corralation between Semirara Mining and Cirtek Holdings

Assuming the 90 days trading horizon Semirara Mining Corp is expected to generate 0.19 times more return on investment than Cirtek Holdings. However, Semirara Mining Corp is 5.34 times less risky than Cirtek Holdings. It trades about 0.01 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  3,250  in Semirara Mining Corp on April 24, 2025 and sell it today you would earn a total of  5.00  from holding Semirara Mining Corp or generate 0.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.8%
Values	Daily Returns

Semirara Mining Corp  vs.  Cirtek Holdings Philippines

Semirara Mining Corp

Risk-Adjusted Performance

Weak

Over the last 90 days Semirara Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Semirara Mining is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Cirtek Holdings Phil

Risk-Adjusted Performance

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.

Pair Trading with Semirara Mining and Cirtek Holdings

The main advantage of trading using opposite Semirara Mining and Cirtek Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Semirara Mining 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 Semirara Mining Corp 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.