Correlation Between BDO Unibank and Premiere Entertainment
Can any of the company-specific risk be diversified away by investing in both BDO Unibank and Premiere Entertainment 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 BDO Unibank and Premiere Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BDO Unibank and Premiere Entertainment, you can compare the effects of market volatilities on BDO Unibank and Premiere Entertainment 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 BDO Unibank with a short position of Premiere Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BDO Unibank and Premiere Entertainment.
Diversification Opportunities for BDO Unibank and Premiere Entertainment
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between BDO and Premiere is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding BDO Unibank and Premiere Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premiere Entertainment and BDO Unibank 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 BDO Unibank are associated (or correlated) with Premiere Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premiere Entertainment has no effect on the direction of BDO Unibank i.e., BDO Unibank and Premiere Entertainment go up and down completely randomly.
Pair Corralation between BDO Unibank and Premiere Entertainment
Assuming the 90 days trading horizon BDO Unibank is expected to under-perform the Premiere Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, BDO Unibank is 1.33 times less risky than Premiere Entertainment. The stock trades about -0.09 of its potential returns per unit of risk. The Premiere Entertainment is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Premiere Entertainment on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Premiere Entertainment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BDO Unibank vs. Premiere Entertainment
Performance |
| Timeline |
| BDO Unibank |
| Premiere Entertainment |
BDO Unibank and Premiere Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BDO Unibank and Premiere Entertainment
The main advantage of trading using opposite BDO Unibank and Premiere Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BDO Unibank position performs unexpectedly, Premiere Entertainment 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 Premiere Entertainment will offset losses from the drop in Premiere Entertainment's long position.| BDO Unibank vs. Integrated Micro Electronics | BDO Unibank vs. Top Frontier Investment | BDO Unibank vs. Semirara Mining Corp | BDO Unibank vs. SM Investments Corp |
| Premiere Entertainment vs. Philippine Business Bank | Premiere Entertainment vs. Semirara Mining Corp | Premiere Entertainment vs. Prime Media Holdings | Premiere Entertainment vs. Metropolitan Bank Trust |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |