Correlation Between Converge Information and San Miguel
Can any of the company-specific risk be diversified away by investing in both Converge Information 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 Converge Information and San Miguel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Converge Information Communications and San Miguel Pure, you can compare the effects of market volatilities on Converge Information 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 Converge Information with a short position of San Miguel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Converge Information and San Miguel.
Diversification Opportunities for Converge Information and San Miguel
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Converge and San is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Converge Information Communica and San Miguel Pure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Miguel Pure and Converge Information 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 Converge Information Communications 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 Pure has no effect on the direction of Converge Information i.e., Converge Information and San Miguel go up and down completely randomly.
Pair Corralation between Converge Information and San Miguel
Assuming the 90 days trading horizon Converge Information is expected to generate 1.72 times less return on investment than San Miguel. In addition to that, Converge Information is 2.23 times more volatile than San Miguel Pure. It trades about 0.02 of its total potential returns per unit of risk. San Miguel Pure is currently generating about 0.08 per unit of volatility. If you would invest 3,549 in San Miguel Pure on September 2, 2024 and sell it today you would earn a total of 1,751 from holding San Miguel Pure or generate 49.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Converge Information Communica vs. San Miguel Pure
Performance |
| Timeline |
| Converge Information |
| San Miguel Pure |
Converge Information and San Miguel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Converge Information and San Miguel
The main advantage of trading using opposite Converge Information and San Miguel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Converge Information 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.| Converge Information vs. Dito CME Holdings | Converge Information vs. Allhome Corp | Converge Information vs. LFM Properties Corp | Converge Information vs. Altus Property Ventures |
| San Miguel vs. Suntrust Home Developers | San Miguel vs. Manulife Financial Corp | San Miguel vs. Bank of the | San Miguel vs. Converge Information Communications |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |