Correlation Between SAN MIGUEL and Peijia Medical
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and Peijia Medical 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 Peijia Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAN MIGUEL BREWERY and Peijia Medical Limited, you can compare the effects of market volatilities on SAN MIGUEL and Peijia Medical 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 Peijia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and Peijia Medical.
Diversification Opportunities for SAN MIGUEL and Peijia Medical
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAN and Peijia is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and Peijia Medical Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peijia Medical 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 BREWERY are associated (or correlated) with Peijia Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peijia Medical has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and Peijia Medical go up and down completely randomly.
Pair Corralation between SAN MIGUEL and Peijia Medical
Assuming the 90 days trading horizon SAN MIGUEL BREWERY is expected to generate 2.08 times more return on investment than Peijia Medical. However, SAN MIGUEL is 2.08 times more volatile than Peijia Medical Limited. It trades about 0.02 of its potential returns per unit of risk. Peijia Medical Limited is currently generating about -0.18 per unit of risk. If you would invest 10.00 in SAN MIGUEL BREWERY on November 7, 2024 and sell it today you would earn a total of 0.00 from holding SAN MIGUEL BREWERY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
SAN MIGUEL BREWERY vs. Peijia Medical Limited
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| Peijia Medical |
SAN MIGUEL and Peijia Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and Peijia Medical
The main advantage of trading using opposite SAN MIGUEL and Peijia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, Peijia Medical 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 Peijia Medical will offset losses from the drop in Peijia Medical's long position.| SAN MIGUEL vs. TERADATA | SAN MIGUEL vs. IMAGIN MEDICAL INC | SAN MIGUEL vs. MEDICAL FACILITIES NEW | SAN MIGUEL vs. NTT DATA |
| Peijia Medical vs. MINCO SILVER | Peijia Medical vs. Sekisui Chemical Co | Peijia Medical vs. Mitsui Chemicals | Peijia Medical vs. MAG SILVER |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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