Correlation Between Concepcion Industrial and Union Bank
Can any of the company-specific risk be diversified away by investing in both Concepcion Industrial and Union Bank 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 Union Bank 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 Union Bank of, you can compare the effects of market volatilities on Concepcion Industrial and Union Bank 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 Union Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concepcion Industrial and Union Bank.
Diversification Opportunities for Concepcion Industrial and Union Bank
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Concepcion and Union is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Concepcion Industrial Corp and Union Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Bank 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 Union Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Bank has no effect on the direction of Concepcion Industrial i.e., Concepcion Industrial and Union Bank go up and down completely randomly.
Pair Corralation between Concepcion Industrial and Union Bank
Assuming the 90 days trading horizon Concepcion Industrial Corp is expected to generate 1.35 times more return on investment than Union Bank. However, Concepcion Industrial is 1.35 times more volatile than Union Bank of. It trades about 0.15 of its potential returns per unit of risk. Union Bank of is currently generating about -0.03 per unit of risk. If you would invest 1,293 in Concepcion Industrial Corp on April 8, 2025 and sell it today you would earn a total of 227.00 from holding Concepcion Industrial Corp or generate 17.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Concepcion Industrial Corp vs. Union Bank of
Performance |
Timeline |
Concepcion Industrial |
Union Bank |
Concepcion Industrial and Union Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Concepcion Industrial and Union Bank
The main advantage of trading using opposite Concepcion Industrial and Union Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concepcion Industrial position performs unexpectedly, Union Bank 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 Union Bank will offset losses from the drop in Union Bank's long position.Concepcion Industrial vs. Semirara Mining Corp | Concepcion Industrial vs. Allhome Corp | Concepcion Industrial vs. Transpacific Broadband Group | Concepcion Industrial vs. National Reinsurance |
Union Bank vs. Alliance Select Foods | Union Bank vs. Atlas Consolidated Mining | Union Bank vs. Jollibee Foods Corp | Union Bank vs. Top Frontier 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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