Correlation Between SAN MIGUEL and Acadia Realty
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and Acadia Realty 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 Acadia Realty 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 Acadia Realty Trust, you can compare the effects of market volatilities on SAN MIGUEL and Acadia Realty 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 Acadia Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and Acadia Realty.
Diversification Opportunities for SAN MIGUEL and Acadia Realty
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAN and Acadia is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and Acadia Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acadia Realty Trust 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 Acadia Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acadia Realty Trust has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and Acadia Realty go up and down completely randomly.
Pair Corralation between SAN MIGUEL and Acadia Realty
Assuming the 90 days trading horizon SAN MIGUEL BREWERY is expected to under-perform the Acadia Realty. In addition to that, SAN MIGUEL is 4.07 times more volatile than Acadia Realty Trust. It trades about -0.01 of its total potential returns per unit of risk. Acadia Realty Trust is currently generating about 0.09 per unit of volatility. If you would invest 1,985 in Acadia Realty Trust on October 18, 2024 and sell it today you would earn a total of 175.00 from holding Acadia Realty Trust or generate 8.82% 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. Acadia Realty Trust
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| Acadia Realty Trust |
SAN MIGUEL and Acadia Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and Acadia Realty
The main advantage of trading using opposite SAN MIGUEL and Acadia Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, Acadia Realty 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 Acadia Realty will offset losses from the drop in Acadia Realty's long position.| SAN MIGUEL vs. InPlay Oil Corp | SAN MIGUEL vs. AGF Management Limited | SAN MIGUEL vs. Playtech plc | SAN MIGUEL vs. Brockhaus Capital Management |
| Acadia Realty vs. SAN MIGUEL BREWERY | Acadia Realty vs. BOSTON BEER A | Acadia Realty vs. Mitsui Chemicals | Acadia Realty vs. ANGLO ASIAN MINING |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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