Correlation Between Aboitiz Equity and Concepcion Industrial

Can any of the company-specific risk be diversified away by investing in both Aboitiz Equity 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 Aboitiz Equity and Concepcion Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aboitiz Equity Ventures and Concepcion Industrial Corp, you can compare the effects of market volatilities on Aboitiz Equity 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 Aboitiz Equity with a short position of Concepcion Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aboitiz Equity and Concepcion Industrial.

Diversification Opportunities for Aboitiz Equity and Concepcion Industrial

0.33

Correlation Coefficient

Aboitiz Equity  Concepcion Industrial

Weak diversification

The 3 months correlation between Aboitiz and Concepcion is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aboitiz Equity Ventures and Concepcion Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concepcion Industrial and Aboitiz Equity 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 Aboitiz Equity Ventures 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 Aboitiz Equity i.e., Aboitiz Equity and Concepcion Industrial go up and down completely randomly.

Pair Corralation between Aboitiz Equity and Concepcion Industrial

Assuming the 90 days trading horizon Aboitiz Equity is expected to generate 4.68 times less return on investment than Concepcion Industrial. In addition to that, Aboitiz Equity is 1.13 times more volatile than Concepcion Industrial Corp. It trades about 0.02 of its total potential returns per unit of risk. Concepcion Industrial Corp is currently generating about 0.08 per unit of volatility. If you would invest  1,368  in Concepcion Industrial Corp on April 24, 2025 and sell it today you would earn a total of  112.00  from holding Concepcion Industrial Corp or generate 8.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Aboitiz Equity Ventures  vs.  Concepcion Industrial Corp

Aboitiz Equity Ventures

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aboitiz Equity Ventures are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Aboitiz Equity is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Concepcion Industrial

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Concepcion Industrial Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Concepcion Industrial may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Aboitiz Equity and Concepcion Industrial

The main advantage of trading using opposite Aboitiz Equity and Concepcion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aboitiz Equity 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.

The idea behind Aboitiz Equity Ventures and Concepcion Industrial Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.