Correlation Between DAX Index and Anheuser-Busch InBev
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By analyzing existing cross correlation between DAX Index and Anheuser Busch InBev SANV, you can compare the effects of market volatilities on DAX Index and Anheuser-Busch InBev 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 DAX Index with a short position of Anheuser-Busch InBev. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Anheuser-Busch InBev.
Diversification Opportunities for DAX Index and Anheuser-Busch InBev
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between DAX and Anheuser-Busch is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Anheuser Busch InBev SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch InBev and DAX Index 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 DAX Index are associated (or correlated) with Anheuser-Busch InBev. 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 DAX Index i.e., DAX Index and Anheuser-Busch InBev go up and down completely randomly.
Pair Corralation between DAX Index and Anheuser-Busch InBev
Assuming the 90 days trading horizon DAX Index is expected to generate 0.63 times more return on investment than Anheuser-Busch InBev. However, DAX Index is 1.58 times less risky than Anheuser-Busch InBev. It trades about 0.08 of its potential returns per unit of risk. Anheuser Busch InBev SANV is currently generating about 0.01 per unit of risk. If you would invest 1,598,996 in DAX Index on August 31, 2024 and sell it today you would earn a total of 363,649 from holding DAX Index or generate 22.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
DAX Index vs. Anheuser Busch InBev SANV
Performance |
| Timeline |
DAX Index and Anheuser-Busch InBev Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Anheuser Busch InBev SANV
Pair trading matchups for Anheuser-Busch InBev
Pair Trading with DAX Index and Anheuser-Busch InBev
The main advantage of trading using opposite DAX Index and Anheuser-Busch InBev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Anheuser-Busch InBev 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 InBev will offset losses from the drop in Anheuser-Busch InBev's long position.| DAX Index vs. Magnachip Semiconductor | DAX Index vs. Taiwan Semiconductor Manufacturing | DAX Index vs. Broadcom | DAX Index vs. MagnaChip Semiconductor Corp |
| Anheuser-Busch InBev vs. MOLSON RS BEVERAGE | Anheuser-Busch InBev vs. Superior Plus Corp | Anheuser-Busch InBev vs. NMI Holdings | Anheuser-Busch InBev vs. Origin Agritech |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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