Correlation Between PLDT and Radcom
Can any of the company-specific risk be diversified away by investing in both PLDT and Radcom 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 Radcom 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 Radcom, you can compare the effects of market volatilities on PLDT and Radcom 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 Radcom. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLDT and Radcom.
Diversification Opportunities for PLDT and Radcom
Very good diversification
The 3 months correlation between PLDT and Radcom is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding PLDT Inc ADR and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom 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 Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of PLDT i.e., PLDT and Radcom go up and down completely randomly.
Pair Corralation between PLDT and Radcom
Considering the 90-day investment horizon PLDT is expected to generate 1.26 times less return on investment than Radcom. But when comparing it to its historical volatility, PLDT Inc ADR is 3.04 times less risky than Radcom. It trades about 0.26 of its potential returns per unit of risk. Radcom is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,359 in Radcom on April 29, 2025 and sell it today you would earn a total of 91.00 from holding Radcom or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLDT Inc ADR vs. Radcom
Performance |
| Timeline |
| PLDT Inc ADR |
| Radcom |
PLDT and Radcom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLDT and Radcom
The main advantage of trading using opposite PLDT and Radcom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLDT position performs unexpectedly, Radcom 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 Radcom will offset losses from the drop in Radcom's long position.| PLDT vs. SK Telecom Co | PLDT vs. KT Corporation | PLDT vs. Telkom Indonesia Tbk | PLDT vs. TIM Participacoes SA |
| Radcom vs. Access Power Co | Radcom vs. PLDT Inc ADR | Radcom vs. BOS Better Online | Radcom vs. Sapiens International |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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