Correlation Between PLDT and KT
Can any of the company-specific risk be diversified away by investing in both PLDT and KT 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 KT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLDT Inc ADR and KT Corporation, you can compare the effects of market volatilities on PLDT and KT 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 KT. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLDT and KT.
Diversification Opportunities for PLDT and KT
Weak diversification
The 3 months correlation between PLDT and KT is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding PLDT Inc ADR and KT Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KT Corporation 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 ADR are associated (or correlated) with KT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KT Corporation has no effect on the direction of PLDT i.e., PLDT and KT go up and down completely randomly.
Pair Corralation between PLDT and KT
Considering the 90-day investment horizon PLDT Inc ADR is expected to under-perform the KT. In addition to that, PLDT is 1.04 times more volatile than KT Corporation. It trades about -0.02 of its total potential returns per unit of risk. KT Corporation is currently generating about 0.13 per unit of volatility. If you would invest 1,769 in KT Corporation on March 24, 2025 and sell it today you would earn a total of 211.00 from holding KT Corporation or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLDT Inc ADR vs. KT Corp.
Performance |
| Timeline |
| PLDT Inc ADR |
| KT Corporation |
PLDT and KT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLDT and KT
The main advantage of trading using opposite PLDT and KT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLDT position performs unexpectedly, KT 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 KT will offset losses from the drop in KT's long position.| PLDT vs. KT Corporation | PLDT vs. Telefonica Brasil SA | PLDT vs. TIM Participacoes SA | PLDT vs. SK Telecom Co |
| KT vs. PLDT Inc ADR | KT vs. Telefonica Brasil SA | KT vs. TIM Participacoes SA | KT vs. Telkom Indonesia Tbk |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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