Correlation Between San Miguel and ENEX Energy
Can any of the company-specific risk be diversified away by investing in both San Miguel and ENEX Energy 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 ENEX Energy 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 ENEX Energy Corp, you can compare the effects of market volatilities on San Miguel and ENEX Energy 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 ENEX Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and ENEX Energy.
Diversification Opportunities for San Miguel and ENEX Energy
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between San and ENEX is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel Pure and ENEX Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENEX Energy Corp 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 ENEX Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENEX Energy Corp has no effect on the direction of San Miguel i.e., San Miguel and ENEX Energy go up and down completely randomly.
Pair Corralation between San Miguel and ENEX Energy
Assuming the 90 days trading horizon San Miguel Pure is expected to generate 0.29 times more return on investment than ENEX Energy. However, San Miguel Pure is 3.43 times less risky than ENEX Energy. It trades about 0.07 of its potential returns per unit of risk. ENEX Energy Corp is currently generating about -0.06 per unit of risk. If you would invest 3,549 in San Miguel Pure on August 30, 2024 and sell it today you would earn a total of 1,601 from holding San Miguel Pure or generate 45.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.72% |
| Values | Daily Returns |
San Miguel Pure vs. ENEX Energy Corp
Performance |
| Timeline |
| San Miguel Pure |
| ENEX Energy Corp |
San Miguel and ENEX Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and ENEX Energy
The main advantage of trading using opposite San Miguel and ENEX Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, ENEX Energy 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 ENEX Energy will offset losses from the drop in ENEX Energy's long position.| San Miguel vs. Metro Retail Stores | San Miguel vs. Semirara Mining Corp | San Miguel vs. Cebu Air Preferred | San Miguel vs. Apex Mining Co |
| ENEX Energy vs. Oriental Petroleum and | ENEX Energy vs. Basic Energy Corp | ENEX Energy vs. GT Capital Holdings | ENEX Energy vs. Allhome 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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