Correlation Between Silicon Motion and SAN MIGUEL
Can any of the company-specific risk be diversified away by investing in both Silicon Motion 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 Silicon Motion and SAN MIGUEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Motion Technology and SAN MIGUEL BREWERY, you can compare the effects of market volatilities on Silicon Motion 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 Silicon Motion with a short position of SAN MIGUEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Motion and SAN MIGUEL.
Diversification Opportunities for Silicon Motion and SAN MIGUEL
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Silicon and SAN is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Motion Technology and SAN MIGUEL BREWERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAN MIGUEL BREWERY and Silicon Motion 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 Silicon Motion Technology 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 BREWERY has no effect on the direction of Silicon Motion i.e., Silicon Motion and SAN MIGUEL go up and down completely randomly.
Pair Corralation between Silicon Motion and SAN MIGUEL
Assuming the 90 days trading horizon Silicon Motion is expected to generate 102.59 times less return on investment than SAN MIGUEL. But when comparing it to its historical volatility, Silicon Motion Technology is 2.76 times less risky than SAN MIGUEL. It trades about 0.0 of its potential returns per unit of risk. SAN MIGUEL BREWERY is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4.24 in SAN MIGUEL BREWERY on October 12, 2024 and sell it today you would earn a total of 5.51 from holding SAN MIGUEL BREWERY or generate 129.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Motion Technology vs. SAN MIGUEL BREWERY
Performance |
| Timeline |
| Silicon Motion Technology |
| SAN MIGUEL BREWERY |
Silicon Motion and SAN MIGUEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Motion and SAN MIGUEL
The main advantage of trading using opposite Silicon Motion and SAN MIGUEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Motion 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.| Silicon Motion vs. ONWARD MEDICAL BV | Silicon Motion vs. INDOFOOD AGRI RES | Silicon Motion vs. TYSON FOODS A | Silicon Motion vs. Lifeway Foods |
| SAN MIGUEL vs. Silicon Motion Technology | SAN MIGUEL vs. INDO RAMA SYNTHETIC | SAN MIGUEL vs. PLANT VEDA FOODS | SAN MIGUEL vs. CanSino Biologics |
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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