Correlation Between SAN MIGUEL and Data Modul
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and Data Modul 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 Data Modul 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 Data Modul AG, you can compare the effects of market volatilities on SAN MIGUEL and Data Modul 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 Data Modul. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and Data Modul.
Diversification Opportunities for SAN MIGUEL and Data Modul
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between SAN and Data is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and Data Modul AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Modul AG 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 Data Modul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Modul AG has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and Data Modul go up and down completely randomly.
Pair Corralation between SAN MIGUEL and Data Modul
Assuming the 90 days trading horizon SAN MIGUEL BREWERY is expected to under-perform the Data Modul. But the stock apears to be less risky and, when comparing its historical volatility, SAN MIGUEL BREWERY is 4.35 times less risky than Data Modul. The stock trades about -0.24 of its potential returns per unit of risk. The Data Modul AG is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,760 in Data Modul AG on October 12, 2024 and sell it today you would lose (80.00) from holding Data Modul AG or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAN MIGUEL BREWERY vs. Data Modul AG
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| Data Modul AG |
SAN MIGUEL and Data Modul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and Data Modul
The main advantage of trading using opposite SAN MIGUEL and Data Modul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, Data Modul 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 Data Modul will offset losses from the drop in Data Modul's long position.| SAN MIGUEL vs. Silicon Motion Technology | SAN MIGUEL vs. INDO RAMA SYNTHETIC | SAN MIGUEL vs. PLANT VEDA FOODS | SAN MIGUEL vs. CanSino Biologics |
| Data Modul vs. Chongqing Machinery Electric | Data Modul vs. Fevertree Drinks PLC | Data Modul vs. Federal Agricultural Mortgage | Data Modul vs. SAN MIGUEL BREWERY |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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