Correlation Between Amazon and PLDT

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

By analyzing existing cross correlation between Amazon Inc and PLDT Inc ADR, you can compare the effects of market volatilities on Amazon 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 Amazon with a short position of PLDT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amazon and PLDT.

Diversification Opportunities for Amazon and PLDT

-0.04

Correlation Coefficient

Amazon  PLDT

Good diversification

The 3 months correlation between Amazon and PLDT is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Amazon Inc 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 Amazon 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 Amazon Inc 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 Amazon i.e., Amazon and PLDT go up and down completely randomly.

Pair Corralation between Amazon and PLDT

Given the investment horizon of 90 days Amazon Inc is expected to generate 1.15 times more return on investment than PLDT. However, Amazon is 1.15 times more volatile than PLDT Inc ADR. It trades about 0.0 of its potential returns per unit of risk. PLDT Inc ADR is currently generating about -0.11 per unit of risk. If you would invest  22,254  in Amazon Inc on July 9, 2025 and sell it today you would lose (164.00) from holding Amazon Inc or give up 0.74% of portfolio value over 90 days.

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

Amazon Inc  vs.  PLDT Inc ADR

Amazon Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Amazon Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Amazon is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

PLDT Inc ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days PLDT Inc ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's technical indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Amazon and PLDT

The main advantage of trading using opposite Amazon and PLDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amazon 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.

The idea behind Amazon Inc and PLDT Inc ADR 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.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.