Correlation Between SAN MIGUEL and Fast Retailing
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and Fast Retailing 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 Fast Retailing 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 Fast Retailing Co, you can compare the effects of market volatilities on SAN MIGUEL and Fast Retailing 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 Fast Retailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and Fast Retailing.
Diversification Opportunities for SAN MIGUEL and Fast Retailing
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAN and Fast is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and Fast Retailing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Retailing 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 Fast Retailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Retailing has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and Fast Retailing go up and down completely randomly.
Pair Corralation between SAN MIGUEL and Fast Retailing
Assuming the 90 days trading horizon SAN MIGUEL BREWERY is expected to generate 3.64 times more return on investment than Fast Retailing. However, SAN MIGUEL is 3.64 times more volatile than Fast Retailing Co. It trades about 0.06 of its potential returns per unit of risk. Fast Retailing Co is currently generating about 0.06 per unit of risk. If you would invest 4.29 in SAN MIGUEL BREWERY on November 6, 2024 and sell it today you would earn a total of 7.71 from holding SAN MIGUEL BREWERY or generate 179.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAN MIGUEL BREWERY vs. Fast Retailing Co
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| Fast Retailing |
SAN MIGUEL and Fast Retailing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and Fast Retailing
The main advantage of trading using opposite SAN MIGUEL and Fast Retailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, Fast Retailing 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 Fast Retailing will offset losses from the drop in Fast Retailing's long position.| SAN MIGUEL vs. betterU Education Corp | SAN MIGUEL vs. SLR Investment Corp | SAN MIGUEL vs. IDP EDUCATION LTD | SAN MIGUEL vs. New Residential Investment |
| Fast Retailing vs. AEON METALS LTD | Fast Retailing vs. IDP EDUCATION LTD | Fast Retailing vs. SIERRA METALS | Fast Retailing vs. Adtalem Global Education |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |