Correlation Between PLDT and Concepcion Industrial

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

By analyzing existing cross correlation between PLDT Inc and Concepcion Industrial Corp, you can compare the effects of market volatilities on PLDT and Concepcion Industrial 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 Concepcion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLDT and Concepcion Industrial.

Diversification Opportunities for PLDT and Concepcion Industrial

-0.48

Correlation Coefficient

PLDT  Concepcion Industrial

Very good diversification

The 3 months correlation between PLDT and Concepcion is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding PLDT Inc and Concepcion Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concepcion Industrial 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 Concepcion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concepcion Industrial has no effect on the direction of PLDT i.e., PLDT and Concepcion Industrial go up and down completely randomly.

Pair Corralation between PLDT and Concepcion Industrial

Assuming the 90 days trading horizon PLDT Inc is expected to under-perform the Concepcion Industrial. But the stock apears to be less risky and, when comparing its historical volatility, PLDT Inc is 1.41 times less risky than Concepcion Industrial. The stock trades about -0.02 of its potential returns per unit of risk. The Concepcion Industrial Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  1,368  in Concepcion Industrial Corp on April 24, 2025 and sell it today you would earn a total of  118.00  from holding Concepcion Industrial Corp or generate 8.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

PLDT Inc  vs.  Concepcion Industrial Corp

PLDT Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLDT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, PLDT is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Concepcion Industrial

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Concepcion Industrial Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Concepcion Industrial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with PLDT and Concepcion Industrial

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

The idea behind PLDT Inc and Concepcion Industrial Corp 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.