Correlation Between San Miguel and Concepcion Industrial

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

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

Diversification Opportunities for San Miguel and Concepcion Industrial

-0.16

Correlation Coefficient

San Miguel  Concepcion Industrial

Good diversification

The 3 months correlation between San and Concepcion is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel Pure and Concepcion Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concepcion Industrial and San Miguel 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 San Miguel Pure 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 San Miguel i.e., San Miguel and Concepcion Industrial go up and down completely randomly.

Pair Corralation between San Miguel and Concepcion Industrial

Assuming the 90 days trading horizon San Miguel is expected to generate 3.61 times less return on investment than Concepcion Industrial. But when comparing it to its historical volatility, San Miguel Pure is 2.28 times less risky than Concepcion Industrial. It trades about 0.09 of its potential returns per unit of risk. Concepcion Industrial Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,290  in Concepcion Industrial Corp on April 21, 2025 and sell it today you would earn a total of  200.00  from holding Concepcion Industrial Corp or generate 15.5% return on investment over 90 days.

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

San Miguel Pure  vs.  Concepcion Industrial Corp

San Miguel Pure

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in San Miguel Pure are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, San Miguel 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

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.

Pair Trading with San Miguel and Concepcion Industrial

The main advantage of trading using opposite San Miguel and Concepcion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel 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 San Miguel Pure 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.