Correlation Between SmartStop Self and PLDT

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

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

Diversification Opportunities for SmartStop Self and PLDT

-0.27

Correlation Coefficient

SmartStop Self  PLDT

Very good diversification

The 3 months correlation between SmartStop and PLDT is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding SmartStop Self Storage 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 SmartStop Self 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 SmartStop Self Storage 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 SmartStop Self i.e., SmartStop Self and PLDT go up and down completely randomly.

Pair Corralation between SmartStop Self and PLDT

Assuming the 90 days horizon SmartStop Self Storage is expected to generate 0.06 times more return on investment than PLDT. However, SmartStop Self Storage is 15.62 times less risky than PLDT. It trades about 0.19 of its potential returns per unit of risk. PLDT Inc ADR is currently generating about -0.02 per unit of risk. If you would invest  3,289  in SmartStop Self Storage on May 12, 2025 and sell it today you would earn a total of  27.00  from holding SmartStop Self Storage or generate 0.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	88.89%
Values	Daily Returns

SmartStop Self Storage  vs.  PLDT Inc ADR

SmartStop Self Storage

Risk-Adjusted Performance

Good

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

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 fairly strong technical indicators, PLDT is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with SmartStop Self and PLDT

The main advantage of trading using opposite SmartStop Self and PLDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartStop Self 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 SmartStop Self Storage 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.