Correlation Between Easycall Communications and Globe Telecom

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Can any of the company-specific risk be diversified away by investing in both Easycall Communications and Globe Telecom 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 Easycall Communications and Globe Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easycall Communications Philippines and Globe Telecom, you can compare the effects of market volatilities on Easycall Communications and Globe Telecom 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 Easycall Communications with a short position of Globe Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easycall Communications and Globe Telecom.

Diversification Opportunities for Easycall Communications and Globe Telecom

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between Easycall and Globe is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Easycall Communications Philip and Globe Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Telecom and Easycall Communications 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 Easycall Communications Philippines are associated (or correlated) with Globe Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Telecom has no effect on the direction of Easycall Communications i.e., Easycall Communications and Globe Telecom go up and down completely randomly.

Pair Corralation between Easycall Communications and Globe Telecom

Assuming the 90 days trading horizon Easycall Communications Philippines is expected to generate 8.19 times more return on investment than Globe Telecom. However, Easycall Communications is 8.19 times more volatile than Globe Telecom. It trades about 0.06 of its potential returns per unit of risk. Globe Telecom is currently generating about -0.21 per unit of risk. If you would invest  250.00  in Easycall Communications Philippines on April 20, 2025 and sell it today you would earn a total of  5.00  from holding Easycall Communications Philippines or generate 2.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy55.74%
ValuesDaily Returns

Easycall Communications Philip  vs.  Globe Telecom

 Performance 
       Timeline  
Easycall Communications 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Easycall Communications Philippines are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Easycall Communications exhibited solid returns over the last few months and may actually be approaching a breakup point.
Globe Telecom 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Globe Telecom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Easycall Communications and Globe Telecom Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Easycall Communications and Globe Telecom

The main advantage of trading using opposite Easycall Communications and Globe Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easycall Communications position performs unexpectedly, Globe Telecom 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 Globe Telecom will offset losses from the drop in Globe Telecom's long position.
The idea behind Easycall Communications Philippines and Globe Telecom pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Transaction History module to view history of all your transactions and understand their impact on performance.

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