Correlation Between Ambev SA and Heineken
Can any of the company-specific risk be diversified away by investing in both Ambev SA and Heineken 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 Ambev SA and Heineken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambev SA and Heineken NV, you can compare the effects of market volatilities on Ambev SA and Heineken 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 Ambev SA with a short position of Heineken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambev SA and Heineken.
Diversification Opportunities for Ambev SA and Heineken
Pay attention - limited upside
The 3 months correlation between Ambev and Heineken is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ambev SA and Heineken NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heineken NV and Ambev SA 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 Ambev SA are associated (or correlated) with Heineken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heineken NV has no effect on the direction of Ambev SA i.e., Ambev SA and Heineken go up and down completely randomly.
Pair Corralation between Ambev SA and Heineken
If you would invest 0.00 in Ambev SA on October 29, 2024 and sell it today you would earn a total of 0.00 from holding Ambev SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Ambev SA vs. Heineken NV
Performance |
| Timeline |
| Ambev SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Heineken NV |
Ambev SA and Heineken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambev SA and Heineken
The main advantage of trading using opposite Ambev SA and Heineken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambev SA position performs unexpectedly, Heineken 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 Heineken will offset losses from the drop in Heineken's long position.| Ambev SA vs. Micron Technology | Ambev SA vs. Casio Computer CoLtd | Ambev SA vs. Firan Technology Group | Ambev SA vs. Wayside Technology Group |
| Heineken vs. MHP Hotel AG | Heineken vs. CHINA TONTINE WINES | Heineken vs. Pebblebrook Hotel Trust | Heineken vs. DALATA HOTEL |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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