Correlation Between Heineken Holding and Asahi Group
Can any of the company-specific risk be diversified away by investing in both Heineken Holding and Asahi Group 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 Heineken Holding and Asahi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heineken Holding NV and Asahi Group Holdings, you can compare the effects of market volatilities on Heineken Holding and Asahi Group 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 Heineken Holding with a short position of Asahi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heineken Holding and Asahi Group.
Diversification Opportunities for Heineken Holding and Asahi Group
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Heineken and Asahi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Heineken Holding NV and Asahi Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asahi Group Holdings and Heineken Holding 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 Heineken Holding NV are associated (or correlated) with Asahi Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asahi Group Holdings has no effect on the direction of Heineken Holding i.e., Heineken Holding and Asahi Group go up and down completely randomly.
Pair Corralation between Heineken Holding and Asahi Group
Assuming the 90 days horizon Heineken Holding NV is expected to under-perform the Asahi Group. But the stock apears to be less risky and, when comparing its historical volatility, Heineken Holding NV is 2.91 times less risky than Asahi Group. The stock trades about -0.31 of its potential returns per unit of risk. The Asahi Group Holdings is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,078 in Asahi Group Holdings on September 1, 2024 and sell it today you would lose (43.00) from holding Asahi Group Holdings or give up 3.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Heineken Holding NV vs. Asahi Group Holdings
Performance |
| Timeline |
| Heineken Holding |
| Asahi Group Holdings |
Heineken Holding and Asahi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heineken Holding and Asahi Group
The main advantage of trading using opposite Heineken Holding and Asahi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heineken Holding position performs unexpectedly, Asahi Group 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 Asahi Group will offset losses from the drop in Asahi Group's long position.| Heineken Holding vs. CyberArk Software | Heineken Holding vs. Take Two Interactive Software | Heineken Holding vs. NAKED WINES PLC | Heineken Holding vs. UNITED RENTALS |
| Asahi Group vs. AOI Electronics Co | Asahi Group vs. BYD ELECTRONIC | Asahi Group vs. UMC Electronics Co | Asahi Group vs. Geely Automobile Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |