Correlation Between Cirtek Holdings and Filinvest Development

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

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

Diversification Opportunities for Cirtek Holdings and Filinvest Development

-0.42

Correlation Coefficient

Cirtek Holdings  Filinvest Development

Very good diversification

The 3 months correlation between Cirtek and Filinvest is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Cirtek Holdings Philippines and Filinvest Development Coprorat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Filinvest Development and Cirtek Holdings 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 Cirtek Holdings Philippines are associated (or correlated) with Filinvest Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Filinvest Development has no effect on the direction of Cirtek Holdings i.e., Cirtek Holdings and Filinvest Development go up and down completely randomly.

Pair Corralation between Cirtek Holdings and Filinvest Development

Assuming the 90 days trading horizon Cirtek Holdings Philippines is expected to under-perform the Filinvest Development. In addition to that, Cirtek Holdings is 4.2 times more volatile than Filinvest Development Coproration. It trades about -0.02 of its total potential returns per unit of risk. Filinvest Development Coproration is currently generating about 0.01 per unit of volatility. If you would invest  495.00  in Filinvest Development Coproration on April 13, 2025 and sell it today you would earn a total of  4.00  from holding Filinvest Development Coproration or generate 0.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	54.05%
Values	Daily Returns

Cirtek Holdings Philippines  vs.  Filinvest Development Coprorat

Cirtek Holdings Phil

Risk-Adjusted Performance

Solid

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 unsteady fundamental drivers, Cirtek Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Filinvest Development

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Filinvest Development Coproration are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Filinvest Development exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cirtek Holdings and Filinvest Development

The main advantage of trading using opposite Cirtek Holdings and Filinvest Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirtek Holdings position performs unexpectedly, Filinvest Development 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 Filinvest Development will offset losses from the drop in Filinvest Development's long position.

The idea behind Cirtek Holdings Philippines and Filinvest Development Coproration 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.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.