Correlation Between SAN MIGUEL and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and BJs Restaurants 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 BJs Restaurants 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 BJs Restaurants, you can compare the effects of market volatilities on SAN MIGUEL and BJs Restaurants 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 BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and BJs Restaurants.
Diversification Opportunities for SAN MIGUEL and BJs Restaurants
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SAN and BJs is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants 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 BJs Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Restaurants has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and BJs Restaurants go up and down completely randomly.
Pair Corralation between SAN MIGUEL and BJs Restaurants
Assuming the 90 days trading horizon SAN MIGUEL BREWERY is expected to generate 1.78 times more return on investment than BJs Restaurants. However, SAN MIGUEL is 1.78 times more volatile than BJs Restaurants. It trades about 0.2 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.08 per unit of risk. If you would invest 10.00 in SAN MIGUEL BREWERY on November 1, 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 | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SAN MIGUEL BREWERY vs. BJs Restaurants
Performance |
| Timeline |
| SAN MIGUEL BREWERY |
| BJs Restaurants |
SAN MIGUEL and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAN MIGUEL and BJs Restaurants
The main advantage of trading using opposite SAN MIGUEL and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, BJs Restaurants 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 BJs Restaurants will offset losses from the drop in BJs Restaurants' long position.| SAN MIGUEL vs. Performance Food Group | SAN MIGUEL vs. PATTIES FOODS | SAN MIGUEL vs. PLANT VEDA FOODS | SAN MIGUEL vs. US FOODS HOLDING |
| BJs Restaurants vs. CHIBA BANK | BJs Restaurants vs. REVO INSURANCE SPA | BJs Restaurants vs. Synovus Financial Corp | BJs Restaurants vs. S E BANKEN A |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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