Correlation Between SAN MIGUEL and GigaMedia
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and GigaMedia 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 GigaMedia 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 GigaMedia, you can compare the effects of market volatilities on SAN MIGUEL and GigaMedia 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 GigaMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and GigaMedia.
Diversification Opportunities for SAN MIGUEL and GigaMedia
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAN and GigaMedia is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and GigaMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaMedia 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 GigaMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaMedia has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and GigaMedia go up and down completely randomly.
Pair Corralation between SAN MIGUEL and GigaMedia
Assuming the 90 days trading horizon SAN MIGUEL BREWERY is expected to generate 0.86 times more return on investment than GigaMedia. However, SAN MIGUEL BREWERY is 1.17 times less risky than GigaMedia. It trades about 0.21 of its potential returns per unit of risk. GigaMedia is currently generating about 0.09 per unit of risk. If you would invest 10.00 in SAN MIGUEL BREWERY on October 26, 2024 and sell it today you would earn a total of 1.00 from holding SAN MIGUEL BREWERY or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAN MIGUEL BREWERY vs. GigaMedia
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| GigaMedia |
SAN MIGUEL and GigaMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and GigaMedia
The main advantage of trading using opposite SAN MIGUEL and GigaMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, GigaMedia 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 GigaMedia will offset losses from the drop in GigaMedia's long position.| SAN MIGUEL vs. VARIOUS EATERIES LS | SAN MIGUEL vs. Renesas Electronics | SAN MIGUEL vs. Methode Electronics | SAN MIGUEL vs. OPERA SOFTWARE |
| GigaMedia vs. MOLSON RS BEVERAGE | GigaMedia vs. Suntory Beverage Food | GigaMedia vs. USWE SPORTS AB | GigaMedia 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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