Correlation Between SAN MIGUEL and PNC FINL

Can any of the company-specific risk be diversified away by investing in both SAN MIGUEL and PNC FINL 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 PNC FINL 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 PNC FINL SER, you can compare the effects of market volatilities on SAN MIGUEL and PNC FINL 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 PNC FINL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAN MIGUEL and PNC FINL.

Diversification Opportunities for SAN MIGUEL and PNC FINL

0.0

Correlation Coefficient

SAN MIGUEL  PNC FINL

Pay attention - limited upside

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

Pair Corralation between SAN MIGUEL and PNC FINL

If you would invest (100.00) in PNC FINL SER on December 20, 2024 and sell it today you would earn a total of  100.00  from holding PNC FINL SER 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 BREWERY  vs.  PNC FINL SER

SAN MIGUEL BREWERY

Risk-Adjusted Performance

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 rather sound basic indicators, SAN MIGUEL is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

PNC FINL SER

Risk-Adjusted Performance

Very Weak

Over the last 90 days PNC FINL SER has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PNC FINL 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 PNC FINL

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

The idea behind SAN MIGUEL BREWERY and PNC FINL SER 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 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.