Correlation Between Anheuser Busch and Wiener Privatbank
Can any of the company-specific risk be diversified away by investing in both Anheuser Busch and Wiener Privatbank 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 Wiener Privatbank 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 Wiener Privatbank SE, you can compare the effects of market volatilities on Anheuser Busch and Wiener Privatbank 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 Wiener Privatbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and Wiener Privatbank.
Diversification Opportunities for Anheuser Busch and Wiener Privatbank
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anheuser and Wiener is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch InBev SANV and Wiener Privatbank SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiener Privatbank 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 Wiener Privatbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiener Privatbank has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and Wiener Privatbank go up and down completely randomly.
Pair Corralation between Anheuser Busch and Wiener Privatbank
Assuming the 90 days trading horizon Anheuser Busch InBev SANV is expected to under-perform the Wiener Privatbank. But the stock apears to be less risky and, when comparing its historical volatility, Anheuser Busch InBev SANV is 1.11 times less risky than Wiener Privatbank. The stock trades about -0.03 of its potential returns per unit of risk. The Wiener Privatbank SE is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 555.00 in Wiener Privatbank SE on September 2, 2024 and sell it today you would earn a total of 210.00 from holding Wiener Privatbank SE or generate 37.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Anheuser Busch InBev SANV vs. Wiener Privatbank SE
Performance |
| Timeline |
| Anheuser Busch InBev |
| Wiener Privatbank |
Anheuser Busch and Wiener Privatbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anheuser Busch and Wiener Privatbank
The main advantage of trading using opposite Anheuser Busch and Wiener Privatbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anheuser Busch position performs unexpectedly, Wiener Privatbank 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 Wiener Privatbank will offset losses from the drop in Wiener Privatbank's long position.| Anheuser Busch vs. UNIQA Insurance Group | Anheuser Busch vs. BKS Bank AG | Anheuser Busch vs. AMAG Austria Metall | Anheuser Busch vs. Oberbank AG |
| Wiener Privatbank vs. Addiko Bank AG | Wiener Privatbank vs. Vienna Insurance Group | Wiener Privatbank vs. Oberbank AG |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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