Correlation Between Monde Nissin and Concepcion Industrial

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

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

Diversification Opportunities for Monde Nissin and Concepcion Industrial

0.67

Correlation Coefficient

Monde Nissin  Concepcion Industrial

Poor diversification

The 3 months correlation between Monde and Concepcion is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Monde Nissin 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 Monde Nissin 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 Monde Nissin 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 Monde Nissin i.e., Monde Nissin and Concepcion Industrial go up and down completely randomly.

Pair Corralation between Monde Nissin and Concepcion Industrial

Assuming the 90 days trading horizon Monde Nissin Corp is expected to under-perform the Concepcion Industrial. In addition to that, Monde Nissin is 2.06 times more volatile than Concepcion Industrial Corp. It trades about -0.24 of its total potential returns per unit of risk. Concepcion Industrial Corp is currently generating about -0.04 per unit of volatility. If you would invest  1,376  in Concepcion Industrial Corp on October 24, 2024 and sell it today you would lose (46.00) from holding Concepcion Industrial Corp or give up 3.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	93.1%
Values	Daily Returns

Monde Nissin Corp  vs.  Concepcion Industrial Corp

Monde Nissin Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Monde Nissin Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

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 rather sound technical and fundamental indicators, Concepcion Industrial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Monde Nissin and Concepcion Industrial

The main advantage of trading using opposite Monde Nissin and Concepcion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monde Nissin 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 Monde Nissin 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.