Correlation Between Integrated Micro and PLDT
Can any of the company-specific risk be diversified away by investing in both Integrated Micro 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 Integrated Micro and PLDT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Micro Electronics and PLDT Inc, you can compare the effects of market volatilities on Integrated Micro 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 Integrated Micro with a short position of PLDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Micro and PLDT.
Diversification Opportunities for Integrated Micro and PLDT
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Integrated and PLDT is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Micro Electronics and PLDT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLDT Inc and Integrated Micro 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 Integrated Micro Electronics 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 Integrated Micro i.e., Integrated Micro and PLDT go up and down completely randomly.
Pair Corralation between Integrated Micro and PLDT
Assuming the 90 days trading horizon Integrated Micro Electronics is expected to under-perform the PLDT. In addition to that, Integrated Micro is 1.73 times more volatile than PLDT Inc. It trades about -0.09 of its total potential returns per unit of risk. PLDT Inc is currently generating about 0.04 per unit of volatility. If you would invest 113,276 in PLDT Inc on September 12, 2024 and sell it today you would earn a total of 18,724 from holding PLDT Inc or generate 16.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.06% |
| Values | Daily Returns |
Integrated Micro Electronics vs. PLDT Inc
Performance |
| Timeline |
| Integrated Micro Ele |
| PLDT Inc |
Integrated Micro and PLDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Micro and PLDT
The main advantage of trading using opposite Integrated Micro and PLDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Micro 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.| Integrated Micro vs. GT Capital Holdings | Integrated Micro vs. Allhome Corp | Integrated Micro vs. Jollibee Foods Corp | Integrated Micro vs. LFM Properties Corp |
| PLDT vs. Integrated Micro Electronics | PLDT vs. Asia United Bank | PLDT vs. Rizal Commercial Banking | PLDT vs. Lepanto Consolidated Mining |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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