Correlation Between San Miguel and Bright Kindle
Can any of the company-specific risk be diversified away by investing in both San Miguel and Bright Kindle 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 San Miguel and Bright Kindle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between San Miguel Pure and Bright Kindle Resources, you can compare the effects of market volatilities on San Miguel and Bright Kindle 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 San Miguel with a short position of Bright Kindle. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and Bright Kindle.
Diversification Opportunities for San Miguel and Bright Kindle
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between San and Bright is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel Pure and Bright Kindle Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bright Kindle Resources and San Miguel 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 San Miguel Pure are associated (or correlated) with Bright Kindle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bright Kindle Resources has no effect on the direction of San Miguel i.e., San Miguel and Bright Kindle go up and down completely randomly.
Pair Corralation between San Miguel and Bright Kindle
Assuming the 90 days trading horizon San Miguel is expected to generate 7.48 times less return on investment than Bright Kindle. But when comparing it to its historical volatility, San Miguel Pure is 4.16 times less risky than Bright Kindle. It trades about 0.02 of its potential returns per unit of risk. Bright Kindle Resources is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 106.00 in Bright Kindle Resources on November 9, 2024 and sell it today you would earn a total of 18.00 from holding Bright Kindle Resources or generate 16.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.17% |
| Values | Daily Returns |
San Miguel Pure vs. Bright Kindle Resources
Performance |
| Timeline |
| San Miguel Pure |
| Bright Kindle Resources |
San Miguel and Bright Kindle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and Bright Kindle
The main advantage of trading using opposite San Miguel and Bright Kindle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, Bright Kindle 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 Bright Kindle will offset losses from the drop in Bright Kindle's long position.| San Miguel vs. Transpacific Broadband Group | San Miguel vs. Robinsons Retail Holdings | San Miguel vs. Lepanto Consolidated Mining | San Miguel vs. Converge Information Communications |
| Bright Kindle vs. Philex Mining Corp | Bright Kindle vs. Top Frontier Investment | Bright Kindle vs. Converge Information Communications | Bright Kindle vs. Concepcion Industrial Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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