Correlation Between US FOODS and SAN MIGUEL
Can any of the company-specific risk be diversified away by investing in both US FOODS 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 US FOODS and SAN MIGUEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US FOODS HOLDING and SAN MIGUEL BREWERY, you can compare the effects of market volatilities on US FOODS 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 US FOODS with a short position of SAN MIGUEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of US FOODS and SAN MIGUEL.
Diversification Opportunities for US FOODS and SAN MIGUEL
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between UFH and SAN is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding US FOODS HOLDING and SAN MIGUEL BREWERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAN MIGUEL BREWERY and US FOODS 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 US FOODS HOLDING 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 BREWERY has no effect on the direction of US FOODS i.e., US FOODS and SAN MIGUEL go up and down completely randomly.
Pair Corralation between US FOODS and SAN MIGUEL
Assuming the 90 days trading horizon US FOODS HOLDING is expected to generate 0.28 times more return on investment than SAN MIGUEL. However, US FOODS HOLDING is 3.57 times less risky than SAN MIGUEL. It trades about 0.13 of its potential returns per unit of risk. SAN MIGUEL BREWERY is currently generating about -0.02 per unit of risk. If you would invest 6,250 in US FOODS HOLDING on November 8, 2024 and sell it today you would earn a total of 600.00 from holding US FOODS HOLDING or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
US FOODS HOLDING vs. SAN MIGUEL BREWERY
Performance |
| Timeline |
| US FOODS HOLDING |
| SAN MIGUEL BREWERY |
US FOODS and SAN MIGUEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US FOODS and SAN MIGUEL
The main advantage of trading using opposite US FOODS and SAN MIGUEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US FOODS 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.| US FOODS vs. PennantPark Investment | US FOODS vs. NTG Nordic Transport | US FOODS vs. Chuangs China Investments | US FOODS vs. Gaztransport Technigaz SA |
| SAN MIGUEL vs. IDP EDUCATION LTD | SAN MIGUEL vs. DaChan Food Limited | SAN MIGUEL vs. EEDUCATION ALBERT AB | SAN MIGUEL vs. Adtalem Global Education |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Positions Ratings 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 | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |