Correlation Between Silicom and PLDT

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

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

Diversification Opportunities for Silicom and PLDT

-0.73

Correlation Coefficient

Silicom  PLDT

Pay attention - limited upside

The 3 months correlation between Silicom and PLDT is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Silicom 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 Silicom 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 Silicom 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 Silicom i.e., Silicom and PLDT go up and down completely randomly.

Pair Corralation between Silicom and PLDT

Given the investment horizon of 90 days Silicom is expected to generate 1.87 times more return on investment than PLDT. However, Silicom is 1.87 times more volatile than PLDT Inc ADR. It trades about 0.07 of its potential returns per unit of risk. PLDT Inc ADR is currently generating about -0.13 per unit of risk. If you would invest  1,578  in Silicom on July 19, 2025 and sell it today you would earn a total of  152.00  from holding Silicom or generate 9.63% return on investment over 90 days.

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

Silicom  vs.  PLDT Inc ADR

Silicom

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Silicom are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating essential indicators, Silicom may actually be approaching a critical reversion point that can send shares even higher in November 2025.

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 unfluctuating 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 Silicom and PLDT

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

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.