Correlation Between Compania Cervecerias and SOUTHERN
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By analyzing existing cross correlation between Compania Cervecerias Unidas and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Compania Cervecerias and SOUTHERN 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 Compania Cervecerias with a short position of SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Cervecerias and SOUTHERN.
Diversification Opportunities for Compania Cervecerias and SOUTHERN
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compania and SOUTHERN is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Compania Cervecerias Unidas and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON and Compania Cervecerias 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 Compania Cervecerias Unidas are associated (or correlated) with SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Compania Cervecerias i.e., Compania Cervecerias and SOUTHERN go up and down completely randomly.
Pair Corralation between Compania Cervecerias and SOUTHERN
Considering the 90-day investment horizon Compania Cervecerias Unidas is expected to under-perform the SOUTHERN. But the stock apears to be less risky and, when comparing its historical volatility, Compania Cervecerias Unidas is 35.39 times less risky than SOUTHERN. The stock trades about -0.03 of its potential returns per unit of risk. The SOUTHERN CALIF EDISON is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.00 in SOUTHERN CALIF EDISON on September 12, 2024 and sell it today you would earn a total of 10,323 from holding SOUTHERN CALIF EDISON or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.97% |
| Values | Daily Returns |
Compania Cervecerias Unidas vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Compania Cervecerias |
| SOUTHERN CALIF EDISON |
Compania Cervecerias and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania Cervecerias and SOUTHERN
The main advantage of trading using opposite Compania Cervecerias and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Cervecerias position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Compania Cervecerias vs. Fomento Economico Mexicano | Compania Cervecerias vs. Boston Beer | Compania Cervecerias vs. Carlsberg AS | Compania Cervecerias vs. Molson Coors Beverage |
| SOUTHERN vs. Fevertree Drinks Plc | SOUTHERN vs. China Tontine Wines | SOUTHERN vs. Treasury Wine Estates | SOUTHERN vs. Compania Cervecerias Unidas |
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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