Correlation Between PCCW and PLDT

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

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

Diversification Opportunities for PCCW and PLDT

0.0

Correlation Coefficient

PCCW  PLDT

Pay attention - limited upside

The 3 months correlation between PCCW and PLDT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PCCW Limited and PLDT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLDT Inc and PCCW 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 PCCW Limited 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 has no effect on the direction of PCCW i.e., PCCW and PLDT go up and down completely randomly.

Pair Corralation between PCCW and PLDT

If you would invest  68.00  in PCCW Limited on August 20, 2025 and sell it today you would earn a total of  10.00  from holding PCCW Limited or generate 14.71% return on investment over 90 days.

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

PCCW Limited  vs.  PLDT Inc

PCCW Limited

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in PCCW Limited are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, PCCW reported solid returns over the last few months and may actually be approaching a breakup point.

PLDT Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days PLDT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, PLDT is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PCCW and PLDT

The main advantage of trading using opposite PCCW and PLDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PCCW 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 PCCW Limited and PLDT Inc 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.