Correlation Between Concepcion Industrial and Jollibee Foods
Can any of the company-specific risk be diversified away by investing in both Concepcion Industrial and Jollibee Foods 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 Jollibee Foods 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 Jollibee Foods Corp, you can compare the effects of market volatilities on Concepcion Industrial and Jollibee Foods 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 Jollibee Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concepcion Industrial and Jollibee Foods.
Diversification Opportunities for Concepcion Industrial and Jollibee Foods
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Concepcion and Jollibee is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Concepcion Industrial Corp and Jollibee Foods Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jollibee Foods 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 Jollibee Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jollibee Foods Corp has no effect on the direction of Concepcion Industrial i.e., Concepcion Industrial and Jollibee Foods go up and down completely randomly.
Pair Corralation between Concepcion Industrial and Jollibee Foods
Assuming the 90 days trading horizon Concepcion Industrial is expected to generate 1.51 times less return on investment than Jollibee Foods. In addition to that, Concepcion Industrial is 1.75 times more volatile than Jollibee Foods Corp. It trades about 0.0 of its total potential returns per unit of risk. Jollibee Foods Corp is currently generating about 0.01 per unit of volatility. If you would invest 23,967 in Jollibee Foods Corp on October 25, 2024 and sell it today you would earn a total of 893.00 from holding Jollibee Foods Corp or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.08% |
| Values | Daily Returns |
Concepcion Industrial Corp vs. Jollibee Foods Corp
Performance |
| Timeline |
| Concepcion Industrial |
| Jollibee Foods Corp |
Concepcion Industrial and Jollibee Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concepcion Industrial and Jollibee Foods
The main advantage of trading using opposite Concepcion Industrial and Jollibee Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concepcion Industrial position performs unexpectedly, Jollibee Foods 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 Jollibee Foods will offset losses from the drop in Jollibee Foods' long position.| Concepcion Industrial vs. Jollibee Foods Corp | Concepcion Industrial vs. National Reinsurance | Concepcion Industrial vs. Transpacific Broadband Group | Concepcion Industrial vs. Lepanto Consolidated Mining |
| Jollibee Foods vs. Philippine Savings Bank | Jollibee Foods vs. Security Bank Corp | Jollibee Foods vs. Top Frontier Investment | Jollibee Foods vs. Allhome 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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