Correlation Between Concepcion Industrial and Philex Mining

Can any of the company-specific risk be diversified away by investing in both Concepcion Industrial and Philex Mining 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 Philex Mining 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 Philex Mining Corp, you can compare the effects of market volatilities on Concepcion Industrial and Philex Mining 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 Philex Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concepcion Industrial and Philex Mining.

Diversification Opportunities for Concepcion Industrial and Philex Mining

-0.4

Correlation Coefficient

Concepcion Industrial  Philex Mining

Very good diversification

The 3 months correlation between Concepcion and Philex is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Concepcion Industrial Corp and Philex Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philex Mining 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 Philex Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philex Mining Corp has no effect on the direction of Concepcion Industrial i.e., Concepcion Industrial and Philex Mining go up and down completely randomly.

Pair Corralation between Concepcion Industrial and Philex Mining

Assuming the 90 days trading horizon Concepcion Industrial Corp is expected to generate 0.56 times more return on investment than Philex Mining. However, Concepcion Industrial Corp is 1.8 times less risky than Philex Mining. It trades about 0.09 of its potential returns per unit of risk. Philex Mining Corp is currently generating about -0.06 per unit of risk. If you would invest  1,362  in Concepcion Industrial Corp on April 23, 2025 and sell it today you would earn a total of  118.00  from holding Concepcion Industrial Corp or generate 8.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Concepcion Industrial Corp  vs.  Philex Mining Corp

Concepcion Industrial

Risk-Adjusted Performance

OK

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.

Philex Mining Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Philex Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Concepcion Industrial and Philex Mining

The main advantage of trading using opposite Concepcion Industrial and Philex Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concepcion Industrial position performs unexpectedly, Philex Mining 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 Philex Mining will offset losses from the drop in Philex Mining's long position.

The idea behind Concepcion Industrial Corp and Philex Mining 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.