Correlation Between Concepcion Industrial and RL Commercial

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

Diversification Opportunities for Concepcion Industrial and RL Commercial

0.49

Correlation Coefficient

Concepcion Industrial  RL Commercial

Very weak diversification

The 3 months correlation between Concepcion and RCR is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Concepcion Industrial Corp and RL Commercial REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RL Commercial REIT 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 RL Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RL Commercial REIT has no effect on the direction of Concepcion Industrial i.e., Concepcion Industrial and RL Commercial go up and down completely randomly.

Pair Corralation between Concepcion Industrial and RL Commercial

Assuming the 90 days trading horizon Concepcion Industrial is expected to generate 2.24 times less return on investment than RL Commercial. In addition to that, Concepcion Industrial is 1.75 times more volatile than RL Commercial REIT. It trades about 0.09 of its total potential returns per unit of risk. RL Commercial REIT is currently generating about 0.34 per unit of volatility. If you would invest  645.00  in RL Commercial REIT on April 23, 2025 and sell it today you would earn a total of  145.00  from holding RL Commercial REIT or generate 22.48% return on investment over 90 days.

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

Concepcion Industrial Corp  vs.  RL Commercial REIT

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.

RL Commercial REIT

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in RL Commercial REIT are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, RL Commercial exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Concepcion Industrial and RL Commercial

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

The idea behind Concepcion Industrial Corp and RL Commercial REIT 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.