Correlation Between Anheuser Busch and BKS Bank
Can any of the company-specific risk be diversified away by investing in both Anheuser Busch and BKS Bank 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 BKS Bank 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 BKS Bank AG, you can compare the effects of market volatilities on Anheuser Busch and BKS Bank 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 BKS Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and BKS Bank.
Diversification Opportunities for Anheuser Busch and BKS Bank
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anheuser and BKS is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch InBev SANV and BKS Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BKS Bank AG 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 BKS Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BKS Bank AG has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and BKS Bank go up and down completely randomly.
Pair Corralation between Anheuser Busch and BKS Bank
Assuming the 90 days trading horizon Anheuser Busch InBev SANV is expected to under-perform the BKS Bank. In addition to that, Anheuser Busch is 3.65 times more volatile than BKS Bank AG. It trades about -0.34 of its total potential returns per unit of risk. BKS Bank AG is currently generating about -0.06 per unit of volatility. If you would invest 1,480 in BKS Bank AG on August 31, 2024 and sell it today you would lose (10.00) from holding BKS Bank AG or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anheuser Busch InBev SANV vs. BKS Bank AG
Performance |
| Timeline |
| Anheuser Busch InBev |
| BKS Bank AG |
Anheuser Busch and BKS Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anheuser Busch and BKS Bank
The main advantage of trading using opposite Anheuser Busch and BKS Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anheuser Busch position performs unexpectedly, BKS Bank 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 BKS Bank will offset losses from the drop in BKS Bank's long position.| Anheuser Busch vs. Wiener Privatbank SE | Anheuser Busch vs. Universal Music Group | Anheuser Busch vs. Addiko Bank AG | Anheuser Busch vs. UNIQA Insurance Group |
| BKS Bank vs. Vienna Insurance Group | BKS Bank vs. AMAG Austria Metall | BKS Bank vs. CNH Industrial NV | BKS Bank vs. SBM Offshore 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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