Correlation Between Manila Bulletin and Concepcion Industrial

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

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

Diversification Opportunities for Manila Bulletin and Concepcion Industrial

-0.57

Correlation Coefficient

Manila Bulletin  Concepcion Industrial

Excellent diversification

The 3 months correlation between Manila and Concepcion is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Manila Bulletin Publishing and Concepcion Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concepcion Industrial and Manila Bulletin 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 Manila Bulletin Publishing 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 Manila Bulletin i.e., Manila Bulletin and Concepcion Industrial go up and down completely randomly.

Pair Corralation between Manila Bulletin and Concepcion Industrial

Assuming the 90 days trading horizon Manila Bulletin Publishing is expected to under-perform the Concepcion Industrial. In addition to that, Manila Bulletin is 2.41 times more volatile than Concepcion Industrial Corp. It trades about -0.02 of its total potential returns per unit of risk. Concepcion Industrial Corp is currently generating about 0.14 per unit of volatility. 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 Against
Strength	Very Weak
Accuracy	40.98%
Values	Daily Returns

Manila Bulletin Publishing  vs.  Concepcion Industrial Corp

Manila Bulletin Publ

Risk-Adjusted Performance

Very Weak

Over the last 90 days Manila Bulletin Publishing has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak 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.

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 Manila Bulletin and Concepcion Industrial

The main advantage of trading using opposite Manila Bulletin and Concepcion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manila Bulletin 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 Manila Bulletin Publishing 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.