Correlation Between Concepcion Industrial and Robinsons Retail

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

Diversification Opportunities for Concepcion Industrial and Robinsons Retail

0.63

Correlation Coefficient

Concepcion Industrial  Robinsons Retail

Poor diversification

The 3 months correlation between Concepcion and Robinsons is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Concepcion Industrial Corp and Robinsons Retail Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robinsons Retail Holdings 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 Robinsons Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robinsons Retail Holdings has no effect on the direction of Concepcion Industrial i.e., Concepcion Industrial and Robinsons Retail go up and down completely randomly.

Pair Corralation between Concepcion Industrial and Robinsons Retail

Assuming the 90 days trading horizon Concepcion Industrial Corp is expected to generate 1.12 times more return on investment than Robinsons Retail. However, Concepcion Industrial is 1.12 times more volatile than Robinsons Retail Holdings. It trades about 0.14 of its potential returns per unit of risk. Robinsons Retail Holdings is currently generating about 0.06 per unit of risk. If you would invest  1,288  in Concepcion Industrial Corp on April 22, 2025 and sell it today you would earn a total of  202.00  from holding Concepcion Industrial Corp or generate 15.68% return on investment over 90 days.

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

Concepcion Industrial Corp  vs.  Robinsons Retail Holdings

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 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Concepcion Industrial exhibited solid returns over the last few months and may actually be approaching a breakup point.

Robinsons Retail Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Robinsons Retail Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Robinsons Retail is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Concepcion Industrial and Robinsons Retail

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

The idea behind Concepcion Industrial Corp and Robinsons Retail Holdings 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.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.