Correlation Between AGF Management and SAN MIGUEL
Can any of the company-specific risk be diversified away by investing in both AGF Management 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 AGF Management and SAN MIGUEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGF Management Limited and SAN MIGUEL BREWERY, you can compare the effects of market volatilities on AGF Management 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 AGF Management with a short position of SAN MIGUEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGF Management and SAN MIGUEL.
Diversification Opportunities for AGF Management and SAN MIGUEL
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between AGF and SAN is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding AGF Management Limited 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 AGF Management 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 AGF Management Limited 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 AGF Management i.e., AGF Management and SAN MIGUEL go up and down completely randomly.
Pair Corralation between AGF Management and SAN MIGUEL
Assuming the 90 days horizon AGF Management Limited is expected to generate 0.37 times more return on investment than SAN MIGUEL. However, AGF Management Limited is 2.68 times less risky than SAN MIGUEL. It trades about 0.17 of its potential returns per unit of risk. SAN MIGUEL BREWERY is currently generating about -0.01 per unit of risk. If you would invest 512.00 in AGF Management Limited on October 18, 2024 and sell it today you would earn a total of 153.00 from holding AGF Management Limited or generate 29.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGF Management Limited vs. SAN MIGUEL BREWERY
Performance |
| Timeline |
| AGF Management |
| SAN MIGUEL BREWERY |
AGF Management and SAN MIGUEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGF Management and SAN MIGUEL
The main advantage of trading using opposite AGF Management and SAN MIGUEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGF Management 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.| AGF Management vs. X FAB Silicon Foundries | AGF Management vs. SILICON LABORATOR | AGF Management vs. Siamgas And Petrochemicals | AGF Management vs. China Resources Beer |
| SAN MIGUEL vs. InPlay Oil Corp | SAN MIGUEL vs. AGF Management Limited | SAN MIGUEL vs. Playtech plc | SAN MIGUEL vs. Brockhaus Capital Management |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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