Correlation Between Philex Mining and Concepcion Industrial

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

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

Diversification Opportunities for Philex Mining and Concepcion Industrial

-0.43

Correlation Coefficient

Philex Mining  Concepcion Industrial

Very good diversification

The 3 months correlation between Philex and Concepcion is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Philex Mining Corp and Concepcion Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concepcion Industrial and Philex Mining 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 Philex Mining Corp 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 Philex Mining i.e., Philex Mining and Concepcion Industrial go up and down completely randomly.

Pair Corralation between Philex Mining and Concepcion Industrial

Assuming the 90 days trading horizon Philex Mining Corp is expected to under-perform the Concepcion Industrial. In addition to that, Philex Mining is 1.72 times more volatile than Concepcion Industrial Corp. It trades about -0.07 of its total potential returns per unit of risk. Concepcion Industrial Corp is currently generating about 0.13 per unit of volatility. 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Philex Mining Corp  vs.  Concepcion Industrial Corp

Philex Mining Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Philex Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing 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 Philex Mining and Concepcion Industrial

The main advantage of trading using opposite Philex Mining and Concepcion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Philex Mining 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 Philex Mining Corp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.