Correlation Between Anheuser Busch and Afya
Can any of the company-specific risk be diversified away by investing in both Anheuser Busch and Afya 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 Anheuser Busch and Afya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anheuser Busch Inbev and Afya, you can compare the effects of market volatilities on Anheuser Busch and Afya 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 Anheuser Busch with a short position of Afya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and Afya.
Diversification Opportunities for Anheuser Busch and Afya
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anheuser and Afya is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch Inbev and Afya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afya and Anheuser Busch 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 Anheuser Busch Inbev are associated (or correlated) with Afya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afya has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and Afya go up and down completely randomly.
Pair Corralation between Anheuser Busch and Afya
Considering the 90-day investment horizon Anheuser Busch Inbev is expected to under-perform the Afya. But the stock apears to be less risky and, when comparing its historical volatility, Anheuser Busch Inbev is 1.88 times less risky than Afya. The stock trades about -0.01 of its potential returns per unit of risk. The Afya is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,437 in Afya on September 5, 2024 and sell it today you would earn a total of 159.00 from holding Afya or generate 11.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anheuser Busch Inbev vs. Afya
Performance |
| Timeline |
| Anheuser Busch Inbev |
| Afya |
Anheuser Busch and Afya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anheuser Busch and Afya
The main advantage of trading using opposite Anheuser Busch and Afya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anheuser Busch position performs unexpectedly, Afya 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 Afya will offset losses from the drop in Afya's long position.| Anheuser Busch vs. Boston Beer | Anheuser Busch vs. Molson Coors Beverage | Anheuser Busch vs. Heineken NV | Anheuser Busch vs. Ambev SA ADR |
| Afya vs. Adtalem Global Education | Afya vs. Laureate Education | Afya vs. American Public Education | Afya vs. Strategic Education |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |