Correlation Between Century Pacific and Prime Media
Can any of the company-specific risk be diversified away by investing in both Century Pacific and Prime Media 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 Century Pacific and Prime Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Century Pacific Food and Prime Media Holdings, you can compare the effects of market volatilities on Century Pacific and Prime Media 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 Century Pacific with a short position of Prime Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Century Pacific and Prime Media.
Diversification Opportunities for Century Pacific and Prime Media
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Century and Prime is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Century Pacific Food and Prime Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Media Holdings and Century Pacific 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 Century Pacific Food are associated (or correlated) with Prime Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Media Holdings has no effect on the direction of Century Pacific i.e., Century Pacific and Prime Media go up and down completely randomly.
Pair Corralation between Century Pacific and Prime Media
Assuming the 90 days trading horizon Century Pacific Food is expected to generate 0.45 times more return on investment than Prime Media. However, Century Pacific Food is 2.21 times less risky than Prime Media. It trades about 0.03 of its potential returns per unit of risk. Prime Media Holdings is currently generating about -0.04 per unit of risk. If you would invest 3,700 in Century Pacific Food on April 24, 2025 and sell it today you would earn a total of 100.00 from holding Century Pacific Food or generate 2.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.33% |
Values | Daily Returns |
Century Pacific Food vs. Prime Media Holdings
Performance |
Timeline |
Century Pacific Food |
Prime Media Holdings |
Century Pacific and Prime Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Century Pacific and Prime Media
The main advantage of trading using opposite Century Pacific and Prime Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Century Pacific position performs unexpectedly, Prime Media 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 Prime Media will offset losses from the drop in Prime Media's long position.Century Pacific vs. Security Bank Corp | Century Pacific vs. Converge Information Communications | Century Pacific vs. Rizal Commercial Banking | Century Pacific vs. Metro Retail Stores |
Prime Media vs. BDO Unibank | Prime Media vs. Jollibee Foods Corp | Prime Media vs. Metro Retail Stores | Prime Media vs. Top Frontier Investment |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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