Correlation Between Brockhaus Capital and SAN MIGUEL
Can any of the company-specific risk be diversified away by investing in both Brockhaus Capital 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 Brockhaus Capital and SAN MIGUEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brockhaus Capital Management and SAN MIGUEL BREWERY, you can compare the effects of market volatilities on Brockhaus Capital 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 Brockhaus Capital with a short position of SAN MIGUEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brockhaus Capital and SAN MIGUEL.
Diversification Opportunities for Brockhaus Capital and SAN MIGUEL
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brockhaus and SAN is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Brockhaus Capital Management 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 Brockhaus Capital 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 Brockhaus Capital Management 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 Brockhaus Capital i.e., Brockhaus Capital and SAN MIGUEL go up and down completely randomly.
Pair Corralation between Brockhaus Capital and SAN MIGUEL
Assuming the 90 days trading horizon Brockhaus Capital Management is expected to under-perform the SAN MIGUEL. But the stock apears to be less risky and, when comparing its historical volatility, Brockhaus Capital Management is 2.3 times less risky than SAN MIGUEL. The stock trades about -0.09 of its potential returns per unit of risk. The SAN MIGUEL BREWERY is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 11.00 in SAN MIGUEL BREWERY on October 18, 2024 and sell it today you would lose (1.50) from holding SAN MIGUEL BREWERY or give up 13.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brockhaus Capital Management vs. SAN MIGUEL BREWERY
Performance |
| Timeline |
| Brockhaus Capital |
| SAN MIGUEL BREWERY |
Brockhaus Capital and SAN MIGUEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brockhaus Capital and SAN MIGUEL
The main advantage of trading using opposite Brockhaus Capital and SAN MIGUEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brockhaus Capital 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.| Brockhaus Capital vs. CHEMICAL INDUSTRIES | Brockhaus Capital vs. PT Steel Pipe | Brockhaus Capital vs. ALGOMA STEEL GROUP | Brockhaus Capital vs. Nippon Steel |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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