Correlation Between LFM Properties and Concepcion Industrial
Can any of the company-specific risk be diversified away by investing in both LFM Properties and Concepcion Industrial 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 LFM Properties and Concepcion Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LFM Properties Corp and Concepcion Industrial Corp, you can compare the effects of market volatilities on LFM Properties and Concepcion Industrial 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 LFM Properties with a short position of Concepcion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of LFM Properties and Concepcion Industrial.
Diversification Opportunities for LFM Properties and Concepcion Industrial
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between LFM and Concepcion is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding LFM Properties Corp and Concepcion Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concepcion Industrial and LFM Properties 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 LFM Properties Corp are associated (or correlated) with Concepcion Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concepcion Industrial has no effect on the direction of LFM Properties i.e., LFM Properties and Concepcion Industrial go up and down completely randomly.
Pair Corralation between LFM Properties and Concepcion Industrial
Assuming the 90 days trading horizon LFM Properties Corp is expected to under-perform the Concepcion Industrial. In addition to that, LFM Properties is 3.99 times more volatile than Concepcion Industrial Corp. It trades about -0.05 of its total potential returns per unit of risk. Concepcion Industrial Corp is currently generating about -0.04 per unit of volatility. If you would invest 1,376 in Concepcion Industrial Corp on August 25, 2024 and sell it today you would lose (26.00) from holding Concepcion Industrial Corp or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.64% |
| Values | Daily Returns |
LFM Properties Corp vs. Concepcion Industrial Corp
Performance |
| Timeline |
| LFM Properties Corp |
| Concepcion Industrial |
LFM Properties and Concepcion Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LFM Properties and Concepcion Industrial
The main advantage of trading using opposite LFM Properties and Concepcion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LFM Properties position performs unexpectedly, Concepcion Industrial 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 Concepcion Industrial will offset losses from the drop in Concepcion Industrial's long position.| LFM Properties vs. Concepcion Industrial Corp | LFM Properties vs. Converge Information Communications | LFM Properties vs. Transpacific Broadband Group | LFM Properties vs. Pacificonline Systems |
| Concepcion Industrial vs. Allhome Corp | Concepcion Industrial vs. Jollibee Foods Corp | Concepcion Industrial vs. LFM Properties Corp | Concepcion Industrial vs. PXP Energy 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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