Correlation Between Molinos Juan and San Miguel
Can any of the company-specific risk be diversified away by investing in both Molinos Juan 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 Molinos Juan and San Miguel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molinos Juan Semino and San Miguel AG, you can compare the effects of market volatilities on Molinos Juan 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 Molinos Juan with a short position of San Miguel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molinos Juan and San Miguel.
Diversification Opportunities for Molinos Juan and San Miguel
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Molinos and San is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Molinos Juan Semino and San Miguel AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Miguel AG and Molinos Juan 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 Molinos Juan Semino 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 AG has no effect on the direction of Molinos Juan i.e., Molinos Juan and San Miguel go up and down completely randomly.
Pair Corralation between Molinos Juan and San Miguel
Assuming the 90 days trading horizon Molinos Juan Semino is expected to under-perform the San Miguel. In addition to that, Molinos Juan is 1.24 times more volatile than San Miguel AG. It trades about -0.25 of its total potential returns per unit of risk. San Miguel AG is currently generating about -0.24 per unit of volatility. If you would invest 130,000 in San Miguel AG on October 20, 2024 and sell it today you would lose (18,000) from holding San Miguel AG or give up 13.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Molinos Juan Semino vs. San Miguel AG
Performance |
| Timeline |
| Molinos Juan Semino |
| San Miguel AG |
Molinos Juan and San Miguel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molinos Juan and San Miguel
The main advantage of trading using opposite Molinos Juan and San Miguel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molinos Juan 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.| Molinos Juan vs. Molinos Agro SA | Molinos Juan vs. Cresud SA | Molinos Juan vs. San Miguel AG | Molinos Juan vs. Ledesma SAAI |
| San Miguel vs. Molinos Agro SA | San Miguel vs. Cresud SA | San Miguel vs. Ledesma SAAI | San Miguel vs. Inversora Juramento SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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