Correlation Between San Miguel and CCC
Can any of the company-specific risk be diversified away by investing in both San Miguel and CCC 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 CCC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between San Miguel Corp and CCC, you can compare the effects of market volatilities on San Miguel and CCC 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 CCC. Check out your portfolio center. Please also check ongoing floating volatility patterns of San Miguel and CCC.
Diversification Opportunities for San Miguel and CCC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between San and CCC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding San Miguel Corp and CCC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC 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 Corp are associated (or correlated) with CCC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC has no effect on the direction of San Miguel i.e., San Miguel and CCC go up and down completely randomly.
Pair Corralation between San Miguel and CCC
If you would invest (100.00) in CCC on January 26, 2024 and sell it today you would earn a total of 100.00 from holding CCC or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
San Miguel Corp vs. CCC
Performance |
| Timeline |
| San Miguel Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CCC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
San Miguel and CCC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with San Miguel and CCC
The main advantage of trading using opposite San Miguel and CCC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if San Miguel position performs unexpectedly, CCC 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 CCC will offset losses from the drop in CCC's long position.| San Miguel vs. United Rentals | San Miguel vs. FTAI Aviation Ltd | San Miguel vs. US Global Investors | San Miguel vs. China Aircraft Leasing |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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