Correlation Between Blue Capital and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both Blue Capital 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 Blue Capital and Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Capital Reinsurance and Anheuser Busch Inbev, you can compare the effects of market volatilities on Blue Capital 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 Blue Capital with a short position of Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Capital and Anheuser Busch.
Diversification Opportunities for Blue Capital and Anheuser Busch
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Blue and Anheuser is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Blue Capital Reinsurance 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 Blue Capital 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 Blue Capital Reinsurance 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 Blue Capital i.e., Blue Capital and Anheuser Busch go up and down completely randomly.
Pair Corralation between Blue Capital and Anheuser Busch
If you would invest 0.02 in Blue Capital Reinsurance on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Blue Capital Reinsurance or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
Blue Capital Reinsurance vs. Anheuser Busch Inbev
Performance |
| Timeline |
| Blue Capital Reinsurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Anheuser Busch Inbev |
Blue Capital and Anheuser Busch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Capital and Anheuser Busch
The main advantage of trading using opposite Blue Capital and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Capital 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.| Blue Capital vs. Insteel Industries | Blue Capital vs. Allegheny Technologies Incorporated | Blue Capital vs. CECO Environmental Corp | Blue Capital vs. Tianjin Capital Environmental |
| 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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