Correlation Between PHILIP and Affinity Beverage

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

By analyzing existing cross correlation between PHILIP MORRIS INTL and Affinity Beverage Group, you can compare the effects of market volatilities on PHILIP and Affinity Beverage 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 PHILIP with a short position of Affinity Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of PHILIP and Affinity Beverage.

Diversification Opportunities for PHILIP and Affinity Beverage

0.0

Correlation Coefficient

PHILIP  Affinity Beverage

Pay attention - limited upside

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

Pair Corralation between PHILIP and Affinity Beverage

If you would invest  0.00  in Affinity Beverage Group on June 14, 2025 and sell it today you would earn a total of  0.00  from holding Affinity Beverage Group or generate 0.0% return on investment over 90 days.

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

PHILIP MORRIS INTL  vs.  Affinity Beverage Group

PHILIP MORRIS INTL

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PHILIP MORRIS INTL are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, PHILIP is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Affinity Beverage

Risk-Adjusted Performance

Weakest

Over the last 90 days Affinity Beverage Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Affinity Beverage is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PHILIP and Affinity Beverage

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

The idea behind PHILIP MORRIS INTL and Affinity Beverage Group 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 Stocks Directory module to find actively traded stocks across global markets.