Correlation Between Carlsberg and Asahi Group
Can any of the company-specific risk be diversified away by investing in both Carlsberg and Asahi Group 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 Carlsberg and Asahi Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and Asahi Group Holdings, you can compare the effects of market volatilities on Carlsberg and Asahi Group 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 Carlsberg with a short position of Asahi Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and Asahi Group.
Diversification Opportunities for Carlsberg and Asahi Group
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Carlsberg and Asahi is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Asahi Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asahi Group Holdings and Carlsberg 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 Carlsberg AS are associated (or correlated) with Asahi Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asahi Group Holdings has no effect on the direction of Carlsberg i.e., Carlsberg and Asahi Group go up and down completely randomly.
Pair Corralation between Carlsberg and Asahi Group
Assuming the 90 days trading horizon Carlsberg AS is expected to generate 1.17 times more return on investment than Asahi Group. However, Carlsberg is 1.17 times more volatile than Asahi Group Holdings. It trades about 0.04 of its potential returns per unit of risk. Asahi Group Holdings is currently generating about 0.01 per unit of risk. If you would invest 7,574 in Carlsberg AS on August 29, 2024 and sell it today you would earn a total of 2,278 from holding Carlsberg AS or generate 30.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg AS vs. Asahi Group Holdings
Performance |
| Timeline |
| Carlsberg AS |
| Asahi Group Holdings |
Carlsberg and Asahi Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and Asahi Group
The main advantage of trading using opposite Carlsberg and Asahi Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg position performs unexpectedly, Asahi Group 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 Asahi Group will offset losses from the drop in Asahi Group's long position.| Carlsberg vs. Tyson Foods | Carlsberg vs. AUSNUTRIA DAIRY | Carlsberg vs. Choice Hotels International | Carlsberg vs. DALATA HOTEL |
| Asahi Group vs. Microchip Technology Incorporated | Asahi Group vs. SOFI TECHNOLOGIES | Asahi Group vs. PKSHA TECHNOLOGY INC | Asahi Group vs. Sunny Optical Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |