Correlation Between San Miguel and Inversora Juramento
Can any of the company-specific risk be diversified away by investing in both San Miguel and Inversora Juramento 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 Inversora Juramento 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 Inversora Juramento SA, you can compare the effects of market volatilities on San Miguel and Inversora Juramento 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 Inversora Juramento. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and Inversora Juramento.
Diversification Opportunities for San Miguel and Inversora Juramento
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between San and Inversora is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel AG and Inversora Juramento SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inversora Juramento 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 Inversora Juramento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inversora Juramento has no effect on the direction of San Miguel i.e., San Miguel and Inversora Juramento go up and down completely randomly.
Pair Corralation between San Miguel and Inversora Juramento
Assuming the 90 days trading horizon San Miguel AG is expected to under-perform the Inversora Juramento. In addition to that, San Miguel is 1.41 times more volatile than Inversora Juramento SA. It trades about -0.1 of its total potential returns per unit of risk. Inversora Juramento SA is currently generating about -0.05 per unit of volatility. If you would invest 44,200 in Inversora Juramento SA on November 2, 2024 and sell it today you would lose (1,350) from holding Inversora Juramento SA or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
San Miguel AG vs. Inversora Juramento SA
Performance |
| Timeline |
| San Miguel AG |
| Inversora Juramento |
San Miguel and Inversora Juramento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and Inversora Juramento
The main advantage of trading using opposite San Miguel and Inversora Juramento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, Inversora Juramento 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 Inversora Juramento will offset losses from the drop in Inversora Juramento's long position.| San Miguel vs. Compania de Transporte | San Miguel vs. Agrometal SAI | San Miguel vs. Harmony Gold Mining | San Miguel vs. Transportadora de Gas |
| Inversora Juramento vs. Harmony Gold Mining | Inversora Juramento vs. Transportadora de Gas | Inversora Juramento vs. Agrometal SAI | Inversora Juramento vs. Compania de Transporte |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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