Correlation Between Cogent Communications and PLDT
Can any of the company-specific risk be diversified away by investing in both Cogent Communications and PLDT 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 Cogent Communications and PLDT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cogent Communications Group and PLDT Inc ADR, you can compare the effects of market volatilities on Cogent Communications and PLDT 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 Cogent Communications with a short position of PLDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cogent Communications and PLDT.
Diversification Opportunities for Cogent Communications and PLDT
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cogent and PLDT is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cogent Communications Group and PLDT Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLDT Inc ADR and Cogent 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 Cogent Communications Group are associated (or correlated) with PLDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLDT Inc ADR has no effect on the direction of Cogent Communications i.e., Cogent Communications and PLDT go up and down completely randomly.
Pair Corralation between Cogent Communications and PLDT
Given the investment horizon of 90 days Cogent Communications Group is expected to under-perform the PLDT. In addition to that, Cogent Communications is 4.36 times more volatile than PLDT Inc ADR. It trades about -0.21 of its total potential returns per unit of risk. PLDT Inc ADR is currently generating about 0.17 per unit of volatility. If you would invest 1,953 in PLDT Inc ADR on August 19, 2025 and sell it today you would earn a total of 217.00 from holding PLDT Inc ADR or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cogent Communications Group vs. PLDT Inc ADR
Performance |
| Timeline |
| Cogent Communications |
| PLDT Inc ADR |
Cogent Communications and PLDT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cogent Communications and PLDT
The main advantage of trading using opposite Cogent Communications and PLDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cogent Communications position performs unexpectedly, PLDT 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 PLDT will offset losses from the drop in PLDT's long position.| Cogent Communications vs. Walt Disney | Cogent Communications vs. Sitka Gold Corp | Cogent Communications vs. MSCI ACWI exAUCONSUMER | Cogent Communications vs. Sycamore Entmt Grp |
| PLDT vs. Telephone and Data | PLDT vs. Liberty Global PLC | PLDT vs. Array Digital Infrastructure, | PLDT vs. Lumen Technologies |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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