Correlation Between SAN MIGUEL and FEMALE HEALTH
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and FEMALE HEALTH 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 FEMALE HEALTH 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 FEMALE HEALTH, you can compare the effects of market volatilities on SAN MIGUEL and FEMALE HEALTH 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 FEMALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and FEMALE HEALTH.
Diversification Opportunities for SAN MIGUEL and FEMALE HEALTH
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SAN and FEMALE is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and FEMALE HEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEMALE HEALTH 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 FEMALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEMALE HEALTH has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and FEMALE HEALTH go up and down completely randomly.
Pair Corralation between SAN MIGUEL and FEMALE HEALTH
Assuming the 90 days trading horizon SAN MIGUEL BREWERY is expected to under-perform the FEMALE HEALTH. But the stock apears to be less risky and, when comparing its historical volatility, SAN MIGUEL BREWERY is 5.63 times less risky than FEMALE HEALTH. The stock trades about -0.16 of its potential returns per unit of risk. The FEMALE HEALTH is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 67.00 in FEMALE HEALTH on October 19, 2024 and sell it today you would earn a total of 4.00 from holding FEMALE HEALTH or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAN MIGUEL BREWERY vs. FEMALE HEALTH
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| FEMALE HEALTH |
SAN MIGUEL and FEMALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and FEMALE HEALTH
The main advantage of trading using opposite SAN MIGUEL and FEMALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, FEMALE HEALTH 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 FEMALE HEALTH will offset losses from the drop in FEMALE HEALTH's long position.| SAN MIGUEL vs. NTT DATA | SAN MIGUEL vs. INFORMATION SVC GRP | SAN MIGUEL vs. DATATEC LTD 2 | SAN MIGUEL vs. DATAGROUP SE |
| FEMALE HEALTH vs. BOSTON BEER A | FEMALE HEALTH vs. Cass Information Systems | FEMALE HEALTH vs. MICRONIC MYDATA | FEMALE HEALTH 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| CEOs Directory Screen CEOs from public companies around the world |