Correlation Between San Miguel and Cresud SA
Can any of the company-specific risk be diversified away by investing in both San Miguel and Cresud SA 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 Cresud SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between San Miguel AG and Cresud SA, you can compare the effects of market volatilities on San Miguel and Cresud SA 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 Cresud SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and Cresud SA.
Diversification Opportunities for San Miguel and Cresud SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between San and Cresud is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel AG and Cresud SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cresud SA 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 AG are associated (or correlated) with Cresud SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cresud SA has no effect on the direction of San Miguel i.e., San Miguel and Cresud SA go up and down completely randomly.
Pair Corralation between San Miguel and Cresud SA
If you would invest 107,633 in Cresud SA on September 2, 2024 and sell it today you would earn a total of 29,367 from holding Cresud SA or generate 27.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
San Miguel AG vs. Cresud SA
Performance |
| Timeline |
| San Miguel AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cresud SA |
San Miguel and Cresud SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and Cresud SA
The main advantage of trading using opposite San Miguel and Cresud SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, Cresud SA 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 Cresud SA will offset losses from the drop in Cresud SA's long position.| San Miguel vs. Transportadora de Gas | San Miguel vs. United States Steel | San Miguel vs. Harmony Gold Mining | San Miguel vs. Agrometal SAI |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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