Correlation Between Anheuser Busch and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Anheuser Busch and Valneva SE 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 Valneva SE 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 Valneva SE, you can compare the effects of market volatilities on Anheuser Busch and Valneva SE 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 Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and Valneva SE.
Diversification Opportunities for Anheuser Busch and Valneva SE
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anheuser and Valneva is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch InBev SANV and Valneva SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE 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 Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and Valneva SE go up and down completely randomly.
Pair Corralation between Anheuser Busch and Valneva SE
Assuming the 90 days trading horizon Anheuser Busch InBev SANV is expected to generate 0.59 times more return on investment than Valneva SE. However, Anheuser Busch InBev SANV is 1.69 times less risky than Valneva SE. It trades about -0.31 of its potential returns per unit of risk. Valneva SE is currently generating about -0.41 per unit of risk. If you would invest 5,960 in Anheuser Busch InBev SANV on August 26, 2024 and sell it today you would lose (710.00) from holding Anheuser Busch InBev SANV or give up 11.91% 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. Valneva SE
Performance |
| Timeline |
| Anheuser Busch InBev |
| Valneva SE |
Anheuser Busch and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anheuser Busch and Valneva SE
The main advantage of trading using opposite Anheuser Busch and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anheuser Busch position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE'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 |
| Valneva SE vs. BKS Bank AG | Valneva SE vs. UNIQA Insurance Group | Valneva SE vs. CNH Industrial NV | Valneva SE 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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