Correlation Between Cirtek Holdings and Concepcion Industrial

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

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

Diversification Opportunities for Cirtek Holdings and Concepcion Industrial

-0.18

Correlation Coefficient

Cirtek Holdings  Concepcion Industrial

Good diversification

The 3 months correlation between Cirtek and Concepcion is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Cirtek Holdings Philippines and Concepcion Industrial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concepcion Industrial and Cirtek Holdings 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 Cirtek Holdings Philippines 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 Cirtek Holdings i.e., Cirtek Holdings and Concepcion Industrial go up and down completely randomly.

Pair Corralation between Cirtek Holdings and Concepcion Industrial

Assuming the 90 days trading horizon Cirtek Holdings Philippines is expected to under-perform the Concepcion Industrial. In addition to that, Cirtek Holdings is 6.48 times more volatile than Concepcion Industrial Corp. It trades about -0.26 of its total potential returns per unit of risk. Concepcion Industrial Corp is currently generating about 0.06 per unit of volatility. If you would invest  1,338  in Concepcion Industrial Corp on December 25, 2024 and sell it today you would earn a total of  62.00  from holding Concepcion Industrial Corp or generate 4.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	87.27%
Values	Daily Returns

Cirtek Holdings Philippines  vs.  Concepcion Industrial Corp

Cirtek Holdings Phil

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cirtek Holdings Philippines has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Concepcion Industrial

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Concepcion Industrial Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. 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 Cirtek Holdings and Concepcion Industrial

The main advantage of trading using opposite Cirtek Holdings and Concepcion Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirtek Holdings 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 Cirtek Holdings Philippines 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.