Correlation Between SAN MIGUEL and AOI Electronics

Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and AOI Electronics 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 AOI Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SAN MIGUEL BREWERY and AOI Electronics Co, you can compare the effects of market volatilities on SAN MIGUEL and AOI Electronics 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 AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and AOI Electronics.

Diversification Opportunities for SAN MIGUEL and AOI Electronics

0.0

Correlation Coefficient

SAN MIGUEL  AOI Electronics

Pay attention - limited upside

The 3 months correlation between SAN and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SAN MIGUEL BREWERY and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics 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 BREWERY are associated (or correlated) with AOI Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOI Electronics has no effect on the direction of SAN MIGUEL i.e., SAN MIGUEL and AOI Electronics go up and down completely randomly.

Pair Corralation between SAN MIGUEL and AOI Electronics

If you would invest  5.98  in SAN MIGUEL BREWERY on October 11, 2024 and sell it today you would earn a total of  3.77  from holding SAN MIGUEL BREWERY or generate 63.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SAN MIGUEL BREWERY  vs.  AOI Electronics Co

SAN MIGUEL BREWERY

Risk-Adjusted Performance

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Very Weak

Over the last 90 days SAN MIGUEL BREWERY has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

AOI Electronics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AOI Electronics Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AOI Electronics is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with SAN MIGUEL and AOI Electronics

The main advantage of trading using opposite SAN MIGUEL and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAN MIGUEL position performs unexpectedly, AOI Electronics 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 AOI Electronics will offset losses from the drop in AOI Electronics' long position.

The idea behind SAN MIGUEL BREWERY and AOI Electronics Co 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..