Correlation Between Concepcion Industrial and Jolliville Holdings

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

Diversification Opportunities for Concepcion Industrial and Jolliville Holdings

0.0

Correlation Coefficient

Concepcion Industrial  Jolliville Holdings

Pay attention - limited upside

The 3 months correlation between Concepcion and Jolliville is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Concepcion Industrial Corp and Jolliville Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jolliville Holdings Corp 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 Jolliville Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jolliville Holdings Corp has no effect on the direction of Concepcion Industrial i.e., Concepcion Industrial and Jolliville Holdings go up and down completely randomly.

Pair Corralation between Concepcion Industrial and Jolliville Holdings

If you would invest  1,212  in Concepcion Industrial Corp on September 25, 2024 and sell it today you would earn a total of  138.00  from holding Concepcion Industrial Corp or generate 11.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Concepcion Industrial Corp  vs.  Jolliville Holdings Corp

Concepcion Industrial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Concepcion Industrial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Jolliville Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jolliville Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Jolliville Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Concepcion Industrial and Jolliville Holdings

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

The idea behind Concepcion Industrial Corp and Jolliville Holdings 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.