Correlation Between PLDT and Manila Mining
Can any of the company-specific risk be diversified away by investing in both PLDT and Manila Mining 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 PLDT and Manila Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLDT Inc and Manila Mining Corp, you can compare the effects of market volatilities on PLDT and Manila Mining 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 PLDT with a short position of Manila Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLDT and Manila Mining.
Diversification Opportunities for PLDT and Manila Mining
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PLDT and Manila is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PLDT Inc and Manila Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manila Mining Corp and PLDT 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 PLDT Inc are associated (or correlated) with Manila Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manila Mining Corp has no effect on the direction of PLDT i.e., PLDT and Manila Mining go up and down completely randomly.
Pair Corralation between PLDT and Manila Mining
Assuming the 90 days trading horizon PLDT Inc is expected to generate 0.38 times more return on investment than Manila Mining. However, PLDT Inc is 2.66 times less risky than Manila Mining. It trades about 0.01 of its potential returns per unit of risk. Manila Mining Corp is currently generating about -0.09 per unit of risk. If you would invest 128,464 in PLDT Inc on October 25, 2024 and sell it today you would earn a total of 1,036 from holding PLDT Inc or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 44.79% |
| Values | Daily Returns |
PLDT Inc vs. Manila Mining Corp
Performance |
| Timeline |
| PLDT Inc |
| Manila Mining Corp |
PLDT and Manila Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLDT and Manila Mining
The main advantage of trading using opposite PLDT and Manila Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLDT position performs unexpectedly, Manila Mining 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 Manila Mining will offset losses from the drop in Manila Mining's long position.| PLDT vs. Figaro Coffee Group | PLDT vs. Globe Telecom | PLDT vs. Converge Information Communications | PLDT vs. Transpacific Broadband Group |
| Manila Mining vs. Premiere Entertainment | Manila Mining vs. Jollibee Foods Corp | Manila Mining vs. Semirara Mining Corp | Manila Mining vs. Converge Information Communications |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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