Correlation Between SAN MIGUEL and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and Calibre Mining 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 Calibre Mining 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 Calibre Mining Corp, you can compare the effects of market volatilities on SAN MIGUEL and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and Calibre Mining.
Diversification Opportunities for SAN MIGUEL and Calibre Mining
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between SAN and Calibre is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and Calibre Mining go up and down completely randomly.
Pair Corralation between SAN MIGUEL and Calibre Mining
Assuming the 90 days trading horizon SAN MIGUEL BREWERY is expected to generate 1.04 times more return on investment than Calibre Mining. However, SAN MIGUEL is 1.04 times more volatile than Calibre Mining Corp. It trades about 0.28 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.26 per unit of risk. If you would invest 10.00 in SAN MIGUEL BREWERY on November 3, 2024 and sell it today you would earn a total of 2.00 from holding SAN MIGUEL BREWERY or generate 20.0% 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. Calibre Mining Corp
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| Calibre Mining Corp |
SAN MIGUEL and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and Calibre Mining
The main advantage of trading using opposite SAN MIGUEL and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.| SAN MIGUEL vs. Yuexiu Transport Infrastructure | SAN MIGUEL vs. Strategic Education | SAN MIGUEL vs. Sixt Leasing SE | SAN MIGUEL vs. DICKS Sporting Goods |
| Calibre Mining vs. Tencent Music Entertainment | Calibre Mining vs. CNVISION MEDIA | Calibre Mining vs. UNIVERSAL MUSIC GROUP | Calibre Mining vs. VARIOUS EATERIES LS |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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