Correlation Between BCE and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both BCE 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 BCE and Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCE Inc and Anheuser Busch Inbev, you can compare the effects of market volatilities on BCE 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 BCE with a short position of Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and Anheuser Busch.
Diversification Opportunities for BCE and Anheuser Busch
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BCE and Anheuser is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc 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 BCE 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 BCE Inc 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 BCE i.e., BCE and Anheuser Busch go up and down completely randomly.
Pair Corralation between BCE and Anheuser Busch
Considering the 90-day investment horizon BCE Inc is expected to under-perform the Anheuser Busch. In addition to that, BCE is 1.35 times more volatile than Anheuser Busch Inbev. It trades about -0.05 of its total potential returns per unit of risk. Anheuser Busch Inbev is currently generating about 0.67 per unit of volatility. If you would invest 4,869 in Anheuser Busch Inbev on December 4, 2024 and sell it today you would earn a total of 1,205 from holding Anheuser Busch Inbev or generate 24.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCE Inc vs. Anheuser Busch Inbev
Performance |
| Timeline |
| BCE Inc |
| Anheuser Busch Inbev |
BCE and Anheuser Busch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCE and Anheuser Busch
The main advantage of trading using opposite BCE and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE 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.| BCE vs. Rogers Communications | BCE vs. America Movil SAB | BCE vs. Telus Corp | BCE vs. Telefonica Brasil SA |
| Anheuser Busch vs. Boston Beer | Anheuser Busch vs. Molson Coors Beverage | Anheuser Busch vs. Heineken NV | Anheuser Busch vs. Ambev SA ADR |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets |