Correlation Between Robinsons Retail and PLDT
Can any of the company-specific risk be diversified away by investing in both Robinsons Retail 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 Robinsons Retail and PLDT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robinsons Retail Holdings and PLDT Inc, you can compare the effects of market volatilities on Robinsons Retail 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 Robinsons Retail with a short position of PLDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and PLDT.
Diversification Opportunities for Robinsons Retail and PLDT
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Robinsons and PLDT is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and PLDT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLDT Inc and Robinsons Retail 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 Robinsons Retail Holdings 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 Robinsons Retail i.e., Robinsons Retail and PLDT go up and down completely randomly.
Pair Corralation between Robinsons Retail and PLDT
Assuming the 90 days trading horizon Robinsons Retail Holdings is expected to under-perform the PLDT. But the stock apears to be less risky and, when comparing its historical volatility, Robinsons Retail Holdings is 1.19 times less risky than PLDT. The stock trades about -0.04 of its potential returns per unit of risk. The PLDT Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 107,345 in PLDT Inc on September 13, 2024 and sell it today you would earn a total of 22,655 from holding PLDT Inc or generate 21.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robinsons Retail Holdings vs. PLDT Inc
Performance |
| Timeline |
| Robinsons Retail Holdings |
| PLDT Inc |
Robinsons Retail and PLDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robinsons Retail and PLDT
The main advantage of trading using opposite Robinsons Retail and PLDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robinsons Retail 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.| Robinsons Retail vs. Megawide Construction Corp | Robinsons Retail vs. Metro Retail Stores | Robinsons Retail vs. Jollibee Foods Corp | Robinsons Retail vs. Transpacific Broadband Group |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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