Correlation Between Ageas SANV and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both Ageas SANV 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 Ageas SANV and Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and Anheuser Busch Inbev, you can compare the effects of market volatilities on Ageas SANV 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 Ageas SANV with a short position of Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and Anheuser Busch.
Diversification Opportunities for Ageas SANV and Anheuser Busch
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ageas and Anheuser is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV 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 Ageas SANV 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 ageas SANV 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 Ageas SANV i.e., Ageas SANV and Anheuser Busch go up and down completely randomly.
Pair Corralation between Ageas SANV and Anheuser Busch
Assuming the 90 days trading horizon ageas SANV is expected to generate 0.56 times more return on investment than Anheuser Busch. However, ageas SANV is 1.77 times less risky than Anheuser Busch. It trades about 0.36 of its potential returns per unit of risk. Anheuser Busch Inbev is currently generating about -0.12 per unit of risk. If you would invest 4,610 in ageas SANV on October 24, 2024 and sell it today you would earn a total of 270.00 from holding ageas SANV or generate 5.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ageas SANV vs. Anheuser Busch Inbev
Performance |
| Timeline |
| ageas SANV |
| Anheuser Busch Inbev |
Ageas SANV and Anheuser Busch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and Anheuser Busch
The main advantage of trading using opposite Ageas SANV and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV 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.| Ageas SANV vs. KBC Groep NV | Ageas SANV vs. Groep Brussel Lambert | Ageas SANV vs. Solvay SA | Ageas SANV vs. Ackermans Van Haaren |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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