Correlation Between COL Financial and PLDT
Can any of the company-specific risk be diversified away by investing in both COL Financial and PLDT 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 COL Financial and PLDT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COL Financial Group and PLDT Inc, you can compare the effects of market volatilities on COL Financial and PLDT 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 COL Financial with a short position of PLDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of COL Financial and PLDT.
Diversification Opportunities for COL Financial and PLDT
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between COL and PLDT is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding COL Financial Group and PLDT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLDT Inc and COL Financial 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 COL Financial Group are associated (or correlated) with PLDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLDT Inc has no effect on the direction of COL Financial i.e., COL Financial and PLDT go up and down completely randomly.
Pair Corralation between COL Financial and PLDT
Assuming the 90 days trading horizon COL Financial Group is expected to generate 1.44 times more return on investment than PLDT. However, COL Financial is 1.44 times more volatile than PLDT Inc. It trades about -0.1 of its potential returns per unit of risk. PLDT Inc is currently generating about -0.19 per unit of risk. If you would invest 183.00 in COL Financial Group on September 13, 2024 and sell it today you would lose (21.00) from holding COL Financial Group or give up 11.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COL Financial Group vs. PLDT Inc
Performance |
| Timeline |
| COL Financial Group |
| PLDT Inc |
COL Financial and PLDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COL Financial and PLDT
The main advantage of trading using opposite COL Financial and PLDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COL Financial position performs unexpectedly, PLDT 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 PLDT will offset losses from the drop in PLDT's long position.| COL Financial vs. VistaREIT | COL Financial vs. Bright Kindle Resources | COL Financial vs. GT Capital Holdings | COL Financial vs. Allhome Corp |
| PLDT vs. Metro Retail Stores | PLDT vs. COL Financial Group | PLDT vs. Robinsons Retail Holdings | PLDT 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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