Correlation Between San Miguel and Golden Haven
Can any of the company-specific risk be diversified away by investing in both San Miguel and Golden Haven 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 Golden Haven 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 Golden Haven Memorial, you can compare the effects of market volatilities on San Miguel and Golden Haven 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 Golden Haven. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and Golden Haven.
Diversification Opportunities for San Miguel and Golden Haven
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between San and Golden is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel Pure and Golden Haven Memorial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Haven Memorial 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 Golden Haven. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Haven Memorial has no effect on the direction of San Miguel i.e., San Miguel and Golden Haven go up and down completely randomly.
Pair Corralation between San Miguel and Golden Haven
Assuming the 90 days trading horizon San Miguel is expected to generate 7.47 times less return on investment than Golden Haven. But when comparing it to its historical volatility, San Miguel Pure is 2.05 times less risky than Golden Haven. It trades about 0.05 of its potential returns per unit of risk. Golden Haven Memorial is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 81,000 in Golden Haven Memorial on August 31, 2024 and sell it today you would earn a total of 134,000 from holding Golden Haven Memorial or generate 165.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 68.32% |
| Values | Daily Returns |
San Miguel Pure vs. Golden Haven Memorial
Performance |
| Timeline |
| San Miguel Pure |
| Golden Haven Memorial |
San Miguel and Golden Haven Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and Golden Haven
The main advantage of trading using opposite San Miguel and Golden Haven positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, Golden Haven 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 Golden Haven will offset losses from the drop in Golden Haven's long position.| San Miguel vs. Top Frontier Investment | San Miguel vs. Rizal Commercial Banking | San Miguel vs. Premiere Entertainment | San Miguel vs. Union Bank of |
| Golden Haven vs. Alliance Select Foods | Golden Haven vs. Century Pacific Food | Golden Haven vs. Robinsons Retail Holdings | Golden Haven vs. Suntrust Home Developers |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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