Correlation Between San Miguel and Converge Information
Can any of the company-specific risk be diversified away by investing in both San Miguel and Converge Information 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 Converge Information 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 Converge Information Communications, you can compare the effects of market volatilities on San Miguel and Converge Information 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 Converge Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and Converge Information.
Diversification Opportunities for San Miguel and Converge Information
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between San and Converge is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel Pure and Converge Information Communica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Converge Information 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 Converge Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Converge Information has no effect on the direction of San Miguel i.e., San Miguel and Converge Information go up and down completely randomly.
Pair Corralation between San Miguel and Converge Information
Assuming the 90 days trading horizon San Miguel is expected to generate 9.83 times less return on investment than Converge Information. But when comparing it to its historical volatility, San Miguel Pure is 2.32 times less risky than Converge Information. It trades about 0.03 of its potential returns per unit of risk. Converge Information Communications is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 765.00 in Converge Information Communications on September 3, 2024 and sell it today you would earn a total of 903.00 from holding Converge Information Communications or generate 118.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
San Miguel Pure vs. Converge Information Communica
Performance |
| Timeline |
| San Miguel Pure |
| Converge Information |
San Miguel and Converge Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and Converge Information
The main advantage of trading using opposite San Miguel and Converge Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, Converge Information 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 Converge Information will offset losses from the drop in Converge Information's long position.| San Miguel vs. Century Pacific Food | San Miguel vs. Metro Retail Stores | San Miguel vs. Pacificonline Systems | San Miguel vs. Transpacific Broadband Group |
| Converge Information vs. Concepcion Industrial Corp | Converge Information vs. Top Frontier Investment | Converge Information vs. Sun Life Financial | Converge Information vs. STI Education Systems |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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