Correlation Between AGFA Gevaert and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both AGFA Gevaert and Anheuser Busch 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 AGFA Gevaert and Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGFA Gevaert NV and Anheuser Busch Inbev, you can compare the effects of market volatilities on AGFA Gevaert and Anheuser Busch 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 AGFA Gevaert with a short position of Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGFA Gevaert and Anheuser Busch.
Diversification Opportunities for AGFA Gevaert and Anheuser Busch
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AGFA and Anheuser is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding AGFA Gevaert NV and Anheuser Busch Inbev in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch Inbev and AGFA Gevaert 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 AGFA Gevaert NV are associated (or correlated) with Anheuser Busch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anheuser Busch Inbev has no effect on the direction of AGFA Gevaert i.e., AGFA Gevaert and Anheuser Busch go up and down completely randomly.
Pair Corralation between AGFA Gevaert and Anheuser Busch
Assuming the 90 days trading horizon AGFA Gevaert NV is expected to under-perform the Anheuser Busch. In addition to that, AGFA Gevaert is 2.21 times more volatile than Anheuser Busch Inbev. It trades about -0.06 of its total potential returns per unit of risk. Anheuser Busch Inbev is currently generating about 0.01 per unit of volatility. If you would invest 5,585 in Anheuser Busch Inbev on November 29, 2024 and sell it today you would earn a total of 95.00 from holding Anheuser Busch Inbev or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGFA Gevaert NV vs. Anheuser Busch Inbev
Performance |
| Timeline |
| AGFA Gevaert NV |
| Anheuser Busch Inbev |
AGFA Gevaert and Anheuser Busch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGFA Gevaert and Anheuser Busch
The main advantage of trading using opposite AGFA Gevaert and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGFA Gevaert position performs unexpectedly, Anheuser Busch 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 Anheuser Busch will offset losses from the drop in Anheuser Busch's long position.| AGFA Gevaert vs. NV Bekaert SA | AGFA Gevaert vs. Barco NV | AGFA Gevaert vs. EVS Broadcast Equipment | AGFA Gevaert vs. Nyrstar NV |
| Anheuser Busch vs. ageas SANV | Anheuser Busch vs. Solvay SA | Anheuser Busch vs. KBC Groep NV | Anheuser Busch vs. Umicore SA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |