Correlation Between PLDT and Citicore Energy

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

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

Diversification Opportunities for PLDT and Citicore Energy

-0.64

Correlation Coefficient

PLDT  Citicore Energy

Excellent diversification

The 3 months correlation between PLDT and Citicore is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding PLDT Inc and Citicore Energy REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citicore Energy REIT 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 Citicore Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citicore Energy REIT has no effect on the direction of PLDT i.e., PLDT and Citicore Energy go up and down completely randomly.

Pair Corralation between PLDT and Citicore Energy

Assuming the 90 days trading horizon PLDT Inc is expected to under-perform the Citicore Energy. In addition to that, PLDT is 1.33 times more volatile than Citicore Energy REIT. It trades about -0.04 of its total potential returns per unit of risk. Citicore Energy REIT is currently generating about 0.31 per unit of volatility. If you would invest  309.00  in Citicore Energy REIT on April 14, 2025 and sell it today you would earn a total of  56.00  from holding Citicore Energy REIT or generate 18.12% return on investment over 90 days.

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

PLDT Inc  vs.  Citicore Energy REIT

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.

Citicore Energy REIT

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Citicore Energy REIT are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Citicore Energy reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PLDT and Citicore Energy

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

The idea behind PLDT Inc and Citicore Energy REIT 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.