Correlation Between VARIOUS EATERIES and SAN MIGUEL
Can any of the company-specific risk be diversified away by investing in both VARIOUS EATERIES and SAN MIGUEL 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 VARIOUS EATERIES and SAN MIGUEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VARIOUS EATERIES LS and SAN MIGUEL BREWERY, you can compare the effects of market volatilities on VARIOUS EATERIES and SAN MIGUEL 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 VARIOUS EATERIES with a short position of SAN MIGUEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARIOUS EATERIES and SAN MIGUEL.
Diversification Opportunities for VARIOUS EATERIES and SAN MIGUEL
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between VARIOUS and SAN is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding VARIOUS EATERIES LS and SAN MIGUEL BREWERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAN MIGUEL BREWERY and VARIOUS EATERIES 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 VARIOUS EATERIES LS are associated (or correlated) with SAN MIGUEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAN MIGUEL BREWERY has no effect on the direction of VARIOUS EATERIES i.e., VARIOUS EATERIES and SAN MIGUEL go up and down completely randomly.
Pair Corralation between VARIOUS EATERIES and SAN MIGUEL
Assuming the 90 days horizon VARIOUS EATERIES LS is expected to under-perform the SAN MIGUEL. But the stock apears to be less risky and, when comparing its historical volatility, VARIOUS EATERIES LS is 4.27 times less risky than SAN MIGUEL. The stock trades about -0.1 of its potential returns per unit of risk. The SAN MIGUEL BREWERY is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5.16 in SAN MIGUEL BREWERY on November 5, 2024 and sell it today you would earn a total of 6.84 from holding SAN MIGUEL BREWERY or generate 132.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VARIOUS EATERIES LS vs. SAN MIGUEL BREWERY
Performance |
| Timeline |
| VARIOUS EATERIES |
| SAN MIGUEL BREWERY |
VARIOUS EATERIES and SAN MIGUEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VARIOUS EATERIES and SAN MIGUEL
The main advantage of trading using opposite VARIOUS EATERIES and SAN MIGUEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARIOUS EATERIES position performs unexpectedly, SAN MIGUEL 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 SAN MIGUEL will offset losses from the drop in SAN MIGUEL's long position.| VARIOUS EATERIES vs. GRUPO CARSO A1 | VARIOUS EATERIES vs. Transport International Holdings | VARIOUS EATERIES vs. GigaMedia | VARIOUS EATERIES vs. GEELY AUTOMOBILE |
| SAN MIGUEL vs. ADRIATIC METALS LS 013355 | SAN MIGUEL vs. Calibre Mining Corp | SAN MIGUEL vs. Casio Computer CoLtd | SAN MIGUEL vs. Rocket Internet SE |
Check out your portfolio center.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 CEOs Directory module to screen CEOs from public companies around the world.
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