Correlation Between San Miguel and Suntrust Home
Can any of the company-specific risk be diversified away by investing in both San Miguel and Suntrust Home 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 Suntrust Home 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 Suntrust Home Developers, you can compare the effects of market volatilities on San Miguel and Suntrust Home 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 Suntrust Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and Suntrust Home.
Diversification Opportunities for San Miguel and Suntrust Home
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between San and Suntrust is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel Pure and Suntrust Home Developers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntrust Home Developers 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 Suntrust Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntrust Home Developers has no effect on the direction of San Miguel i.e., San Miguel and Suntrust Home go up and down completely randomly.
Pair Corralation between San Miguel and Suntrust Home
Assuming the 90 days trading horizon San Miguel Pure is expected to generate 0.45 times more return on investment than Suntrust Home. However, San Miguel Pure is 2.2 times less risky than Suntrust Home. It trades about 0.11 of its potential returns per unit of risk. Suntrust Home Developers is currently generating about -0.05 per unit of risk. If you would invest 4,522 in San Miguel Pure on September 2, 2024 and sell it today you would earn a total of 778.00 from holding San Miguel Pure or generate 17.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.48% |
| Values | Daily Returns |
San Miguel Pure vs. Suntrust Home Developers
Performance |
| Timeline |
| San Miguel Pure |
| Suntrust Home Developers |
San Miguel and Suntrust Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and Suntrust Home
The main advantage of trading using opposite San Miguel and Suntrust Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, Suntrust Home 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 Suntrust Home will offset losses from the drop in Suntrust Home's long position.| San Miguel vs. Suntrust Home Developers | San Miguel vs. Manulife Financial Corp | San Miguel vs. Bank of the | San Miguel vs. Converge Information Communications |
| Suntrust Home vs. Prime Media Holdings | Suntrust Home vs. Alliance Select Foods | Suntrust Home vs. Converge Information Communications | Suntrust Home vs. Premiere Entertainment |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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