Correlation Between San Miguel and Cibl
Can any of the company-specific risk be diversified away by investing in both San Miguel and Cibl 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 Cibl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between San Miguel and Cibl Inc, you can compare the effects of market volatilities on San Miguel and Cibl 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 Cibl. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and Cibl.
Diversification Opportunities for San Miguel and Cibl
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between San and Cibl is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel and Cibl Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cibl Inc 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 are associated (or correlated) with Cibl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cibl Inc has no effect on the direction of San Miguel i.e., San Miguel and Cibl go up and down completely randomly.
Pair Corralation between San Miguel and Cibl
Assuming the 90 days horizon San Miguel is expected to generate 0.72 times more return on investment than Cibl. However, San Miguel is 1.4 times less risky than Cibl. It trades about 0.31 of its potential returns per unit of risk. Cibl Inc is currently generating about -0.02 per unit of risk. If you would invest 138.00 in San Miguel on August 31, 2024 and sell it today you would earn a total of 24.00 from holding San Miguel or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
San Miguel vs. Cibl Inc
Performance |
| Timeline |
| San Miguel |
| Cibl Inc |
San Miguel and Cibl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and Cibl
The main advantage of trading using opposite San Miguel and Cibl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, Cibl 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 Cibl will offset losses from the drop in Cibl's long position.The idea behind San Miguel and Cibl Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Cibl vs. HUMANA INC | Cibl vs. Aquagold International | Cibl vs. Barloworld Ltd ADR | Cibl vs. Thrivent High Yield |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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