Correlation Between Prime Media and Benguet Corp

Can any of the company-specific risk be diversified away by investing in both Prime Media and Benguet Corp 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 Prime Media and Benguet Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Prime Media Holdings and Benguet Corp A, you can compare the effects of market volatilities on Prime Media and Benguet Corp 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 Prime Media with a short position of Benguet Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Media and Benguet Corp.

Diversification Opportunities for Prime Media and Benguet Corp

-0.39

Correlation Coefficient

Prime Media  Benguet Corp

Very good diversification

The 3 months correlation between Prime and Benguet is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Prime Media Holdings and Benguet Corp A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benguet Corp A and Prime Media 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 Prime Media Holdings are associated (or correlated) with Benguet Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benguet Corp A has no effect on the direction of Prime Media i.e., Prime Media and Benguet Corp go up and down completely randomly.

Pair Corralation between Prime Media and Benguet Corp

Assuming the 90 days trading horizon Prime Media Holdings is expected to under-perform the Benguet Corp. In addition to that, Prime Media is 2.63 times more volatile than Benguet Corp A. It trades about -0.04 of its total potential returns per unit of risk. Benguet Corp A is currently generating about 0.08 per unit of volatility. If you would invest  415.00  in Benguet Corp A on April 24, 2025 and sell it today you would earn a total of  22.00  from holding Benguet Corp A or generate 5.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	79.66%
Values	Daily Returns

Prime Media Holdings  vs.  Benguet Corp A

Prime Media Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Prime Media Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Benguet Corp A

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Benguet Corp A are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Benguet Corp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Prime Media and Benguet Corp

The main advantage of trading using opposite Prime Media and Benguet Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Media position performs unexpectedly, Benguet Corp 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 Benguet Corp will offset losses from the drop in Benguet Corp's long position.

The idea behind Prime Media Holdings and Benguet Corp A 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.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.