Correlation Between Premiere Entertainment and THE PHILIPPINE
Can any of the company-specific risk be diversified away by investing in both Premiere Entertainment and THE PHILIPPINE 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 Premiere Entertainment and THE PHILIPPINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premiere Entertainment and THE PHILIPPINE STOCK, you can compare the effects of market volatilities on Premiere Entertainment and THE PHILIPPINE 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 Premiere Entertainment with a short position of THE PHILIPPINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premiere Entertainment and THE PHILIPPINE.
Diversification Opportunities for Premiere Entertainment and THE PHILIPPINE
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Premiere and THE is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Premiere Entertainment and THE PHILIPPINE STOCK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THE PHILIPPINE STOCK and Premiere Entertainment 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 Premiere Entertainment are associated (or correlated) with THE PHILIPPINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THE PHILIPPINE STOCK has no effect on the direction of Premiere Entertainment i.e., Premiere Entertainment and THE PHILIPPINE go up and down completely randomly.
Pair Corralation between Premiere Entertainment and THE PHILIPPINE
Assuming the 90 days trading horizon Premiere Entertainment is expected to generate 4.1 times more return on investment than THE PHILIPPINE. However, Premiere Entertainment is 4.1 times more volatile than THE PHILIPPINE STOCK. It trades about 0.1 of its potential returns per unit of risk. THE PHILIPPINE STOCK is currently generating about -0.03 per unit of risk. If you would invest 17.00 in Premiere Entertainment on January 17, 2025 and sell it today you would earn a total of 5.00 from holding Premiere Entertainment or generate 29.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
Premiere Entertainment vs. THE PHILIPPINE STOCK
Performance |
| Timeline |
Premiere Entertainment and THE PHILIPPINE Volatility Contrast
Predicted Return Density |
| Returns |
Premiere Entertainment
Pair trading matchups for Premiere Entertainment
THE PHILIPPINE STOCK
Pair trading matchups for THE PHILIPPINE
Pair Trading with Premiere Entertainment and THE PHILIPPINE
The main advantage of trading using opposite Premiere Entertainment and THE PHILIPPINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premiere Entertainment position performs unexpectedly, THE PHILIPPINE 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 THE PHILIPPINE will offset losses from the drop in THE PHILIPPINE's long position.| Premiere Entertainment vs. Sun Life Financial | Premiere Entertainment vs. STI Education Systems | Premiere Entertainment vs. Bank of the | Premiere Entertainment vs. Philex Mining Corp |
| THE PHILIPPINE vs. Transpacific Broadband Group | THE PHILIPPINE vs. Sun Life Financial | THE PHILIPPINE vs. COL Financial Group | THE PHILIPPINE vs. Metro Retail Stores |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |