Correlation Between Concepcion Industrial and EEI Corp
Can any of the company-specific risk be diversified away by investing in both Concepcion Industrial and EEI Corp 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 Concepcion Industrial and EEI Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concepcion Industrial Corp and EEI Corp, you can compare the effects of market volatilities on Concepcion Industrial and EEI Corp 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 Concepcion Industrial with a short position of EEI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concepcion Industrial and EEI Corp.
Diversification Opportunities for Concepcion Industrial and EEI Corp
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Concepcion and EEI is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Concepcion Industrial Corp and EEI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EEI Corp and Concepcion Industrial 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 Concepcion Industrial Corp are associated (or correlated) with EEI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EEI Corp has no effect on the direction of Concepcion Industrial i.e., Concepcion Industrial and EEI Corp go up and down completely randomly.
Pair Corralation between Concepcion Industrial and EEI Corp
Assuming the 90 days trading horizon Concepcion Industrial Corp is expected to generate 0.75 times more return on investment than EEI Corp. However, Concepcion Industrial Corp is 1.34 times less risky than EEI Corp. It trades about 0.06 of its potential returns per unit of risk. EEI Corp is currently generating about -0.18 per unit of risk. If you would invest 1,350 in Concepcion Industrial Corp on September 15, 2024 and sell it today you would earn a total of 30.00 from holding Concepcion Industrial Corp or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Concepcion Industrial Corp vs. EEI Corp
Performance |
| Timeline |
| Concepcion Industrial |
| EEI Corp |
Concepcion Industrial and EEI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concepcion Industrial and EEI Corp
The main advantage of trading using opposite Concepcion Industrial and EEI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concepcion Industrial position performs unexpectedly, EEI Corp 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 EEI Corp will offset losses from the drop in EEI Corp's long position.| Concepcion Industrial vs. Dizon Copper Silver | Concepcion Industrial vs. GT Capital Holdings | Concepcion Industrial vs. Allhome Corp | Concepcion Industrial vs. Jollibee Foods Corp |
| EEI Corp vs. Megawide Construction Corp | EEI Corp vs. Converge Information Communications | EEI Corp vs. Concepcion Industrial Corp | EEI Corp vs. Century Pacific Food |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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