Correlation Between Heineken and Carlsberg
Can any of the company-specific risk be diversified away by investing in both Heineken and Carlsberg 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 Heineken and Carlsberg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heineken NV and Carlsberg AS, you can compare the effects of market volatilities on Heineken and Carlsberg 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 Heineken with a short position of Carlsberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heineken and Carlsberg.
Diversification Opportunities for Heineken and Carlsberg
Almost no diversification
The 3 months correlation between Heineken and Carlsberg is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Heineken NV and Carlsberg AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carlsberg AS and Heineken 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 Heineken NV are associated (or correlated) with Carlsberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carlsberg AS has no effect on the direction of Heineken i.e., Heineken and Carlsberg go up and down completely randomly.
Pair Corralation between Heineken and Carlsberg
Assuming the 90 days horizon Heineken is expected to generate 3.16 times less return on investment than Carlsberg. But when comparing it to its historical volatility, Heineken NV is 1.01 times less risky than Carlsberg. It trades about 0.11 of its potential returns per unit of risk. Carlsberg AS is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 2,415 in Carlsberg AS on December 16, 2024 and sell it today you would earn a total of 250.00 from holding Carlsberg AS or generate 10.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heineken NV vs. Carlsberg AS
Performance |
| Timeline |
| Heineken NV |
| Carlsberg AS |
Heineken and Carlsberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heineken and Carlsberg
The main advantage of trading using opposite Heineken and Carlsberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heineken position performs unexpectedly, Carlsberg 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 Carlsberg will offset losses from the drop in Carlsberg's long position.| Heineken vs. Anheuser Busch InBev SANV | ||
| Heineken vs. Tsingtao Brewery Co | ||
| Heineken vs. Carlsberg AS | ||
| Heineken vs. Heineken Holding NV |
| Carlsberg vs. Suntory Beverage Food | ||
| Carlsberg vs. Asahi Group Holdings | ||
| Carlsberg vs. Compania Cervecerias Unidas | ||
| Carlsberg vs. Heineken NV |
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.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |
Recommendations on macroaxis.com are based on what is currently trending. Macroaxis LLC is not a registered investment advisor or broker/dealer.
The information on the site should be used for informational purposes only and is not investment advice.
more