Correlation Between United Breweries and SIL Investments
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By analyzing existing cross correlation between United Breweries Limited and SIL Investments Limited, you can compare the effects of market volatilities on United Breweries and SIL Investments 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 United Breweries with a short position of SIL Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Breweries and SIL Investments.
Diversification Opportunities for United Breweries and SIL Investments
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and SIL is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding United Breweries Limited and SIL Investments Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIL Investments and United Breweries 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 United Breweries Limited are associated (or correlated) with SIL Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIL Investments has no effect on the direction of United Breweries i.e., United Breweries and SIL Investments go up and down completely randomly.
Pair Corralation between United Breweries and SIL Investments
Assuming the 90 days trading horizon United Breweries Limited is expected to generate 1.05 times more return on investment than SIL Investments. However, United Breweries is 1.05 times more volatile than SIL Investments Limited. It trades about 0.08 of its potential returns per unit of risk. SIL Investments Limited is currently generating about -0.08 per unit of risk. If you would invest 199,935 in United Breweries Limited on October 23, 2024 and sell it today you would earn a total of 6,515 from holding United Breweries Limited or generate 3.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
United Breweries Limited vs. SIL Investments Limited
Performance |
| Timeline |
| United Breweries |
| SIL Investments |
United Breweries and SIL Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Breweries and SIL Investments
The main advantage of trading using opposite United Breweries and SIL Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Breweries position performs unexpectedly, SIL Investments 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 SIL Investments will offset losses from the drop in SIL Investments' long position.| United Breweries vs. SANOFI S HEALTHC | United Breweries vs. Global Health Limited | United Breweries vs. Southern Petrochemicals Industries | United Breweries vs. Chembond Chemicals |
| SIL Investments vs. EMBASSY OFFICE PARKS | SIL Investments vs. KNR Constructions Limited | SIL Investments vs. Reliance Communications Limited | SIL Investments vs. United Breweries Limited |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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