Correlation Between Cirtek Holdings and VistaREIT

Can any of the company-specific risk be diversified away by investing in both Cirtek Holdings and VistaREIT 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 VistaREIT 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 VistaREIT, you can compare the effects of market volatilities on Cirtek Holdings and VistaREIT 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 VistaREIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirtek Holdings and VistaREIT.

Diversification Opportunities for Cirtek Holdings and VistaREIT

-0.85

Correlation Coefficient

Cirtek Holdings  VistaREIT

Pay attention - limited upside

The 3 months correlation between Cirtek and VistaREIT is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cirtek Holdings Philippines and VistaREIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VistaREIT 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 VistaREIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VistaREIT has no effect on the direction of Cirtek Holdings i.e., Cirtek Holdings and VistaREIT go up and down completely randomly.

Pair Corralation between Cirtek Holdings and VistaREIT

Assuming the 90 days trading horizon Cirtek Holdings Philippines is expected to generate 24.1 times more return on investment than VistaREIT. However, Cirtek Holdings is 24.1 times more volatile than VistaREIT. It trades about 0.36 of its potential returns per unit of risk. VistaREIT is currently generating about 0.11 per unit of risk. If you would invest  3.73  in Cirtek Holdings Philippines on April 20, 2025 and sell it today you would earn a total of  5.27  from holding Cirtek Holdings Philippines or generate 141.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	32.26%
Values	Daily Returns

Cirtek Holdings Philippines  vs.  VistaREIT

Cirtek Holdings Phil

Risk-Adjusted Performance

Strong

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.

VistaREIT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VistaREIT are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, VistaREIT 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 Cirtek Holdings and VistaREIT

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

The idea behind Cirtek Holdings Philippines and VistaREIT 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.