Correlation Between Philex Mining and PLDT
Can any of the company-specific risk be diversified away by investing in both Philex Mining 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 Philex Mining and PLDT 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 PLDT Inc, you can compare the effects of market volatilities on Philex Mining 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 Philex Mining with a short position of PLDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Philex Mining and PLDT.
Diversification Opportunities for Philex Mining and PLDT
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Philex and PLDT is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and PLDT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLDT Inc 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 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 Philex Mining i.e., Philex Mining and PLDT go up and down completely randomly.
Pair Corralation between Philex Mining and PLDT
Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the PLDT. In addition to that, Philex Mining is 1.15 times more volatile than PLDT Inc. It trades about -0.3 of its total potential returns per unit of risk. PLDT Inc is currently generating about -0.2 per unit of volatility. If you would invest 140,000 in PLDT Inc on September 3, 2024 and sell it today you would lose (10,300) from holding PLDT Inc or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Philex Mining Corp vs. PLDT Inc
Performance |
| Timeline |
| Philex Mining Corp |
| PLDT Inc |
Philex Mining and PLDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Philex Mining and PLDT
The main advantage of trading using opposite Philex Mining and PLDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining 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.| Philex Mining vs. Lepanto Consolidated Mining | Philex Mining vs. Converge Information Communications | Philex Mining vs. Semirara Mining Corp | Philex Mining vs. Atlas 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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