Correlation Between Premiere Entertainment and San Miguel
Can any of the company-specific risk be diversified away by investing in both Premiere Entertainment and San Miguel 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 Premiere Entertainment and San Miguel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premiere Entertainment and San Miguel Pure, you can compare the effects of market volatilities on Premiere Entertainment and San Miguel 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 Premiere Entertainment with a short position of San Miguel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premiere Entertainment and San Miguel.
Diversification Opportunities for Premiere Entertainment and San Miguel
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Premiere and San is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Premiere Entertainment and San Miguel Pure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Miguel Pure and Premiere Entertainment 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 Premiere Entertainment are associated (or correlated) with San Miguel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Miguel Pure has no effect on the direction of Premiere Entertainment i.e., Premiere Entertainment and San Miguel go up and down completely randomly.
Pair Corralation between Premiere Entertainment and San Miguel
Assuming the 90 days trading horizon Premiere Entertainment is expected to under-perform the San Miguel. In addition to that, Premiere Entertainment is 3.27 times more volatile than San Miguel Pure. It trades about -0.01 of its total potential returns per unit of risk. San Miguel Pure is currently generating about 0.08 per unit of volatility. If you would invest 3,455 in San Miguel Pure on September 3, 2024 and sell it today you would earn a total of 1,845 from holding San Miguel Pure or generate 53.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premiere Entertainment vs. San Miguel Pure
Performance |
| Timeline |
| Premiere Entertainment |
| San Miguel Pure |
Premiere Entertainment and San Miguel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premiere Entertainment and San Miguel
The main advantage of trading using opposite Premiere Entertainment and San Miguel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premiere Entertainment position performs unexpectedly, San Miguel 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 San Miguel will offset losses from the drop in San Miguel's long position.| Premiere Entertainment vs. Metro Retail Stores | Premiere Entertainment vs. Robinsons Retail Holdings | Premiere Entertainment vs. Philex Mining Corp | Premiere Entertainment vs. Metropolitan Bank Trust |
| San Miguel vs. Century Pacific Food | San Miguel vs. Metro Retail Stores | San Miguel vs. Pacificonline Systems | San Miguel vs. Transpacific Broadband Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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