Correlation Between TuanChe ADR and PLDT

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

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

Diversification Opportunities for TuanChe ADR and PLDT

-0.55

Correlation Coefficient

TuanChe ADR  PLDT

Excellent diversification

The 3 months correlation between TuanChe and PLDT is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding TuanChe ADR 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 TuanChe ADR 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 TuanChe ADR 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 TuanChe ADR i.e., TuanChe ADR and PLDT go up and down completely randomly.

Pair Corralation between TuanChe ADR and PLDT

Allowing for the 90-day total investment horizon TuanChe ADR is expected to under-perform the PLDT. In addition to that, TuanChe ADR is 3.63 times more volatile than PLDT Inc ADR. It trades about -0.08 of its total potential returns per unit of risk. PLDT Inc ADR is currently generating about -0.03 per unit of volatility. If you would invest  2,337  in PLDT Inc ADR on May 19, 2025 and sell it today you would lose (55.00) from holding PLDT Inc ADR or give up 2.35% of portfolio value over 90 days.

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

TuanChe ADR  vs.  PLDT Inc ADR

TuanChe ADR

Risk-Adjusted Performance

Weakest

Over the last 90 days TuanChe ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 TuanChe ADR and PLDT

The main advantage of trading using opposite TuanChe ADR and PLDT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TuanChe ADR 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 TuanChe ADR 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .