Correlation Between SAN MIGUEL and Stryker
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and Stryker 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 Stryker 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 Stryker, you can compare the effects of market volatilities on SAN MIGUEL and Stryker 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 Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and Stryker.
Diversification Opportunities for SAN MIGUEL and Stryker
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SAN and Stryker is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker 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 Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and Stryker go up and down completely randomly.
Pair Corralation between SAN MIGUEL and Stryker
Assuming the 90 days trading horizon SAN MIGUEL BREWERY is expected to generate 5.07 times more return on investment than Stryker. However, SAN MIGUEL is 5.07 times more volatile than Stryker. It trades about 0.06 of its potential returns per unit of risk. Stryker is currently generating about 0.08 per unit of risk. If you would invest 4.29 in SAN MIGUEL BREWERY on November 5, 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 Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
SAN MIGUEL BREWERY vs. Stryker
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| Stryker |
SAN MIGUEL and Stryker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and Stryker
The main advantage of trading using opposite SAN MIGUEL and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, Stryker 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 Stryker will offset losses from the drop in Stryker's long position.| SAN MIGUEL vs. Wenzhou Kangning Hospital | SAN MIGUEL vs. Gol Intelligent Airlines | SAN MIGUEL vs. WESANA HEALTH HOLD | SAN MIGUEL vs. International Consolidated Airlines |
| Stryker vs. ARDAGH METAL PACDL 0001 | Stryker vs. Perseus Mining Limited | Stryker vs. UNIVERSAL MUSIC GROUP | Stryker vs. FUYO GENERAL LEASE |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |