Correlation Between PHINMA Corp and Concepcion Industrial
Can any of the company-specific risk be diversified away by investing in both PHINMA Corp 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 PHINMA Corp and Concepcion Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PHINMA Corp and Concepcion Industrial Corp, you can compare the effects of market volatilities on PHINMA Corp 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 PHINMA Corp with a short position of Concepcion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHINMA Corp and Concepcion Industrial.
Diversification Opportunities for PHINMA Corp and Concepcion Industrial
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between PHINMA and Concepcion is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding PHINMA 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 PHINMA Corp 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 PHINMA 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 PHINMA Corp i.e., PHINMA Corp and Concepcion Industrial go up and down completely randomly.
Pair Corralation between PHINMA Corp and Concepcion Industrial
Assuming the 90 days trading horizon PHINMA Corp is expected to generate 2.83 times less return on investment than Concepcion Industrial. In addition to that, PHINMA Corp is 1.8 times more volatile than Concepcion Industrial Corp. It trades about 0.01 of its total potential returns per unit of risk. Concepcion Industrial Corp is currently generating about 0.03 per unit of volatility. If you would invest 1,274 in Concepcion Industrial Corp on September 14, 2024 and sell it today you would earn a total of 108.00 from holding Concepcion Industrial Corp or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 89.08% |
| Values | Daily Returns |
PHINMA Corp vs. Concepcion Industrial Corp
Performance |
| Timeline |
| PHINMA Corp |
| Concepcion Industrial |
PHINMA Corp and Concepcion Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PHINMA Corp and Concepcion Industrial
The main advantage of trading using opposite PHINMA Corp and Concepcion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PHINMA Corp 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.| PHINMA Corp vs. Concepcion Industrial Corp | PHINMA Corp vs. Converge Information Communications | PHINMA Corp vs. Apex Mining Co | PHINMA Corp vs. Figaro Coffee Group |
| Concepcion Industrial vs. GT Capital Holdings | Concepcion Industrial vs. Allhome Corp | Concepcion Industrial vs. Jollibee Foods Corp | Concepcion Industrial 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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