Correlation Between Blackstone and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both Blackstone 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 Blackstone and Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackstone Group and Anheuser Busch InBev SANV, you can compare the effects of market volatilities on Blackstone 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 Blackstone with a short position of Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackstone and Anheuser Busch.
Diversification Opportunities for Blackstone and Anheuser Busch
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Blackstone and Anheuser is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Blackstone Group and Anheuser Busch InBev SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch InBev and Blackstone 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 Blackstone Group 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 Blackstone i.e., Blackstone and Anheuser Busch go up and down completely randomly.
Pair Corralation between Blackstone and Anheuser Busch
Assuming the 90 days trading horizon Blackstone Group is expected to generate 1.46 times more return on investment than Anheuser Busch. However, Blackstone is 1.46 times more volatile than Anheuser Busch InBev SANV. It trades about 0.32 of its potential returns per unit of risk. Anheuser Busch InBev SANV is currently generating about -0.25 per unit of risk. If you would invest 15,580 in Blackstone Group on September 4, 2024 and sell it today you would earn a total of 2,540 from holding Blackstone Group or generate 16.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackstone Group vs. Anheuser Busch InBev SANV
Performance |
| Timeline |
| Blackstone Group |
| Anheuser Busch InBev |
Blackstone and Anheuser Busch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackstone and Anheuser Busch
The main advantage of trading using opposite Blackstone and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackstone 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.| Blackstone vs. Lion One Metals | Blackstone vs. Jacquet Metal Service | Blackstone vs. Summit Hotel Properties | Blackstone vs. Scandinavian Tobacco Group |
| Anheuser Busch vs. Strategic Investments AS | Anheuser Busch vs. EAT WELL INVESTMENT | Anheuser Busch vs. SBI Insurance Group | Anheuser Busch vs. LIFENET INSURANCE CO |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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