Correlation Between Anheuser Busch and CA Immobilien
Can any of the company-specific risk be diversified away by investing in both Anheuser Busch and CA Immobilien 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 CA Immobilien 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 CA Immobilien Anlagen, you can compare the effects of market volatilities on Anheuser Busch and CA Immobilien 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 CA Immobilien. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and CA Immobilien.
Diversification Opportunities for Anheuser Busch and CA Immobilien
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anheuser and CAI is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch InBev SANV and CA Immobilien Anlagen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CA Immobilien Anlagen 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 CA Immobilien. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CA Immobilien Anlagen has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and CA Immobilien go up and down completely randomly.
Pair Corralation between Anheuser Busch and CA Immobilien
Assuming the 90 days trading horizon Anheuser Busch InBev SANV is expected to generate 0.77 times more return on investment than CA Immobilien. However, Anheuser Busch InBev SANV is 1.29 times less risky than CA Immobilien. It trades about -0.02 of its potential returns per unit of risk. CA Immobilien Anlagen is currently generating about -0.05 per unit of risk. If you would invest 5,714 in Anheuser Busch InBev SANV on August 27, 2024 and sell it today you would lose (464.00) from holding Anheuser Busch InBev SANV or give up 8.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anheuser Busch InBev SANV vs. CA Immobilien Anlagen
Performance |
| Timeline |
| Anheuser Busch InBev |
| CA Immobilien Anlagen |
Anheuser Busch and CA Immobilien Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anheuser Busch and CA Immobilien
The main advantage of trading using opposite Anheuser Busch and CA Immobilien positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anheuser Busch position performs unexpectedly, CA Immobilien 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 CA Immobilien will offset losses from the drop in CA Immobilien's long position.| Anheuser Busch vs. RATH Aktiengesellschaft | Anheuser Busch vs. Semperit Aktiengesellschaft Holding | Anheuser Busch vs. Oesterr Post AG | Anheuser Busch vs. Voestalpine AG |
| CA Immobilien vs. IMMOFINANZ AG | CA Immobilien vs. S IMMO AG | CA Immobilien vs. Wienerberger AG | CA Immobilien vs. Vienna Insurance Group |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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