Correlation Between Anheuser Busch and Ekopak BV
Can any of the company-specific risk be diversified away by investing in both Anheuser Busch and Ekopak BV 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 Ekopak BV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anheuser Busch Inbev and Ekopak BV, you can compare the effects of market volatilities on Anheuser Busch and Ekopak BV 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 Ekopak BV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and Ekopak BV.
Diversification Opportunities for Anheuser Busch and Ekopak BV
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anheuser and Ekopak is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch Inbev and Ekopak BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekopak BV 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 are associated (or correlated) with Ekopak BV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekopak BV has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and Ekopak BV go up and down completely randomly.
Pair Corralation between Anheuser Busch and Ekopak BV
Assuming the 90 days trading horizon Anheuser Busch Inbev is expected to generate 0.59 times more return on investment than Ekopak BV. However, Anheuser Busch Inbev is 1.71 times less risky than Ekopak BV. It trades about 0.08 of its potential returns per unit of risk. Ekopak BV is currently generating about -0.11 per unit of risk. If you would invest 4,740 in Anheuser Busch Inbev on November 9, 2024 and sell it today you would earn a total of 121.00 from holding Anheuser Busch Inbev or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anheuser Busch Inbev vs. Ekopak BV
Performance |
| Timeline |
| Anheuser Busch Inbev |
| Ekopak BV |
Anheuser Busch and Ekopak BV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anheuser Busch and Ekopak BV
The main advantage of trading using opposite Anheuser Busch and Ekopak BV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anheuser Busch position performs unexpectedly, Ekopak BV 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 Ekopak BV will offset losses from the drop in Ekopak BV's long position.| Anheuser Busch vs. ageas SANV | Anheuser Busch vs. Solvay SA | Anheuser Busch vs. KBC Groep NV | Anheuser Busch vs. Umicore SA |
| Ekopak BV vs. Xior Student Housing | Ekopak BV vs. DIeteren Group SA | Ekopak BV vs. Melexis NV | Ekopak BV vs. DEME Group NV |
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 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..
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