Correlation Between Philex Mining and GT Capital
Can any of the company-specific risk be diversified away by investing in both Philex Mining 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 Philex Mining and GT Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Philex Mining Corp and GT Capital Holdings, you can compare the effects of market volatilities on Philex Mining 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 Philex Mining with a short position of GT Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and GT Capital.
Diversification Opportunities for Philex Mining and GT Capital
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Philex and GTCAP is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp 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 Philex 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 Philex Mining Corp 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 Philex Mining i.e., Philex Mining and GT Capital go up and down completely randomly.
Pair Corralation between Philex Mining and GT Capital
Assuming the 90 days trading horizon Philex Mining is expected to generate 2.54 times less return on investment than GT Capital. In addition to that, Philex Mining is 1.2 times more volatile than GT Capital Holdings. It trades about 0.03 of its total potential returns per unit of risk. GT Capital Holdings is currently generating about 0.1 per unit of volatility. If you would invest 59,740 in GT Capital Holdings on June 4, 2025 and sell it today you would earn a total of 7,960 from holding GT Capital Holdings or generate 13.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.36% |
| Values | Daily Returns |
Philex Mining Corp vs. GT Capital Holdings
Performance |
| Timeline |
| Philex Mining Corp |
| GT Capital Holdings |
Philex Mining and GT Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and GT Capital
The main advantage of trading using opposite Philex Mining and GT Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining 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.| Philex Mining vs. Megawide Construction Corp | Philex Mining vs. Apex Mining Co | Philex Mining vs. Metropolitan Bank Trust | Philex Mining vs. National Reinsurance |
| GT Capital vs. Integrated Micro Electronics | GT Capital vs. Concepcion Industrial Corp | GT Capital vs. Alliance Select Foods | GT Capital vs. National Reinsurance |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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