Correlation Between SAN MIGUEL and FARM 51
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and FARM 51 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 FARM 51 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 FARM 51 GROUP, you can compare the effects of market volatilities on SAN MIGUEL and FARM 51 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 FARM 51. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and FARM 51.
Diversification Opportunities for SAN MIGUEL and FARM 51
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SAN and FARM is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and FARM 51 GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FARM 51 GROUP 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 FARM 51. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FARM 51 GROUP has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and FARM 51 go up and down completely randomly.
Pair Corralation between SAN MIGUEL and FARM 51
Assuming the 90 days trading horizon SAN MIGUEL BREWERY is expected to generate 0.26 times more return on investment than FARM 51. However, SAN MIGUEL BREWERY is 3.86 times less risky than FARM 51. It trades about -0.24 of its potential returns per unit of risk. FARM 51 GROUP is currently generating about -0.24 per unit of risk. If you would invest 10.00 in SAN MIGUEL BREWERY on October 13, 2024 and sell it today you would lose (0.25) from holding SAN MIGUEL BREWERY or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAN MIGUEL BREWERY vs. FARM 51 GROUP
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| FARM 51 GROUP |
SAN MIGUEL and FARM 51 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and FARM 51
The main advantage of trading using opposite SAN MIGUEL and FARM 51 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, FARM 51 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 FARM 51 will offset losses from the drop in FARM 51's long position.| SAN MIGUEL vs. GRUPO CARSO A1 | SAN MIGUEL vs. Siamgas And Petrochemicals | SAN MIGUEL vs. Magic Software Enterprises | SAN MIGUEL vs. VITEC SOFTWARE GROUP |
| FARM 51 vs. ENVVENO MEDICAL DL 00001 | FARM 51 vs. Peijia Medical Limited | FARM 51 vs. SAN MIGUEL BREWERY | FARM 51 vs. China Resources Beer |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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