Correlation Between Concepcion Industrial and Integrated Micro
Can any of the company-specific risk be diversified away by investing in both Concepcion Industrial and Integrated Micro 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 Integrated Micro 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 Integrated Micro Electronics, you can compare the effects of market volatilities on Concepcion Industrial and Integrated Micro 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 Integrated Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concepcion Industrial and Integrated Micro.
Diversification Opportunities for Concepcion Industrial and Integrated Micro
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Concepcion and Integrated is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Concepcion Industrial Corp and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele 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 Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of Concepcion Industrial i.e., Concepcion Industrial and Integrated Micro go up and down completely randomly.
Pair Corralation between Concepcion Industrial and Integrated Micro
Assuming the 90 days trading horizon Concepcion Industrial Corp is expected to generate 0.73 times more return on investment than Integrated Micro. However, Concepcion Industrial Corp is 1.38 times less risky than Integrated Micro. It trades about -0.08 of its potential returns per unit of risk. Integrated Micro Electronics is currently generating about -0.09 per unit of risk. If you would invest 1,400 in Concepcion Industrial Corp on September 1, 2024 and sell it today you would lose (50.00) from holding Concepcion Industrial Corp or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concepcion Industrial Corp vs. Integrated Micro Electronics
Performance |
| Timeline |
| Concepcion Industrial |
| Integrated Micro Ele |
Concepcion Industrial and Integrated Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concepcion Industrial and Integrated Micro
The main advantage of trading using opposite Concepcion Industrial and Integrated Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concepcion Industrial position performs unexpectedly, Integrated Micro 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 Integrated Micro will offset losses from the drop in Integrated Micro's long position.| Concepcion Industrial vs. GT Capital Holdings | Concepcion Industrial vs. Allhome Corp | Concepcion Industrial vs. Jollibee Foods Corp | Concepcion Industrial vs. LFM Properties Corp |
| Integrated Micro vs. GT Capital Holdings | Integrated Micro vs. Allhome Corp | Integrated Micro vs. Jollibee Foods Corp | Integrated Micro vs. LFM Properties Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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