Correlation Between San Miguel and Emperador
Can any of the company-specific risk be diversified away by investing in both San Miguel and Emperador 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 Emperador 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 Emperador, you can compare the effects of market volatilities on San Miguel and Emperador 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 Emperador. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and Emperador.
Diversification Opportunities for San Miguel and Emperador
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between San and Emperador is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel Pure and Emperador in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emperador 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 Emperador. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emperador has no effect on the direction of San Miguel i.e., San Miguel and Emperador go up and down completely randomly.
Pair Corralation between San Miguel and Emperador
Assuming the 90 days trading horizon San Miguel Pure is expected to under-perform the Emperador. In addition to that, San Miguel is 5.92 times more volatile than Emperador. It trades about -0.05 of its total potential returns per unit of risk. Emperador is currently generating about -0.15 per unit of volatility. If you would invest 1,818 in Emperador on September 13, 2024 and sell it today you would lose (18.00) from holding Emperador or give up 0.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
San Miguel Pure vs. Emperador
Performance |
| Timeline |
| San Miguel Pure |
| Emperador |
San Miguel and Emperador Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and Emperador
The main advantage of trading using opposite San Miguel and Emperador positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, Emperador 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 Emperador will offset losses from the drop in Emperador's long position.| San Miguel vs. Ever Gotesco Resources | San Miguel vs. GT Capital Holdings | San Miguel vs. Allhome Corp | San Miguel vs. Jollibee Foods Corp |
| Emperador vs. SM Investments Corp | Emperador vs. San Miguel Pure | Emperador vs. Ayala Corp | Emperador vs. Ayala Land |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |