Correlation Between Anheuser Busch and HNI
Can any of the company-specific risk be diversified away by investing in both Anheuser Busch and HNI 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 Anheuser Busch and HNI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anheuser Busch InBev SANV and HNI Corporation, you can compare the effects of market volatilities on Anheuser Busch and HNI 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 Anheuser Busch with a short position of HNI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and HNI.
Diversification Opportunities for Anheuser Busch and HNI
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anheuser and HNI is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch InBev SANV and HNI Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corporation and Anheuser Busch 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 Anheuser Busch InBev SANV are associated (or correlated) with HNI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corporation has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and HNI go up and down completely randomly.
Pair Corralation between Anheuser Busch and HNI
Assuming the 90 days trading horizon Anheuser Busch InBev SANV is expected to under-perform the HNI. But the stock apears to be less risky and, when comparing its historical volatility, Anheuser Busch InBev SANV is 1.87 times less risky than HNI. The stock trades about -0.24 of its potential returns per unit of risk. The HNI Corporation is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 4,530 in HNI Corporation on September 4, 2024 and sell it today you would earn a total of 870.00 from holding HNI Corporation or generate 19.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anheuser Busch InBev SANV vs. HNI Corp.
Performance |
| Timeline |
| Anheuser Busch InBev |
| HNI Corporation |
Anheuser Busch and HNI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anheuser Busch and HNI
The main advantage of trading using opposite Anheuser Busch and HNI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anheuser Busch position performs unexpectedly, HNI 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 HNI will offset losses from the drop in HNI's long position.| Anheuser Busch vs. Japan Post Insurance | Anheuser Busch vs. INTER CARS SA | Anheuser Busch vs. Grupo Carso SAB | Anheuser Busch vs. Ping An Insurance |
| HNI vs. Monster Beverage Corp | HNI vs. Gamma Communications plc | HNI vs. INTERSHOP Communications Aktiengesellschaft | HNI vs. Computershare Limited |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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