Correlation Between Celyad SA and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both Celyad SA 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 Celyad SA and Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celyad SA and Anheuser Busch Inbev, you can compare the effects of market volatilities on Celyad SA 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 Celyad SA with a short position of Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celyad SA and Anheuser Busch.
Diversification Opportunities for Celyad SA and Anheuser Busch
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Celyad and Anheuser is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Celyad SA 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 Celyad SA 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 Celyad SA 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 Celyad SA i.e., Celyad SA and Anheuser Busch go up and down completely randomly.
Pair Corralation between Celyad SA and Anheuser Busch
Assuming the 90 days trading horizon Celyad SA is expected to generate 20.89 times more return on investment than Anheuser Busch. However, Celyad SA is 20.89 times more volatile than Anheuser Busch Inbev. It trades about 0.27 of its potential returns per unit of risk. Anheuser Busch Inbev is currently generating about -0.28 per unit of risk. If you would invest 28.00 in Celyad SA on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Celyad SA or generate 160.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celyad SA vs. Anheuser Busch Inbev
Performance |
| Timeline |
| Celyad SA |
| Anheuser Busch Inbev |
Celyad SA and Anheuser Busch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celyad SA and Anheuser Busch
The main advantage of trading using opposite Celyad SA and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celyad SA 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.| Celyad SA vs. Retail Estates | Celyad SA vs. Shurgard Self Storage | Celyad SA vs. Onward Medical NV | Celyad SA vs. Vastned Retail Belgium |
| Anheuser Busch vs. ageas SANV | Anheuser Busch vs. Solvay SA | Anheuser Busch vs. KBC Groep NV | Anheuser Busch vs. Umicore SA |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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