Correlation Between Heineken Holding and Heineken
Can any of the company-specific risk be diversified away by investing in both Heineken Holding and Heineken 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 Holding and Heineken into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heineken Holding NV and Heineken NV, you can compare the effects of market volatilities on Heineken Holding and Heineken 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 Holding with a short position of Heineken. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heineken Holding and Heineken.
Diversification Opportunities for Heineken Holding and Heineken
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Heineken and Heineken is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Heineken Holding NV and Heineken NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heineken NV and Heineken Holding 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 Holding NV are associated (or correlated) with Heineken. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heineken NV has no effect on the direction of Heineken Holding i.e., Heineken Holding and Heineken go up and down completely randomly.
Pair Corralation between Heineken Holding and Heineken
Assuming the 90 days horizon Heineken Holding NV is expected to generate 0.87 times more return on investment than Heineken. However, Heineken Holding NV is 1.15 times less risky than Heineken. It trades about 0.15 of its potential returns per unit of risk. Heineken NV is currently generating about -0.11 per unit of risk. If you would invest 2,969 in Heineken Holding NV on November 2, 2024 and sell it today you would earn a total of 111.00 from holding Heineken Holding NV or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heineken Holding NV vs. Heineken NV
Performance |
| Timeline |
| Heineken Holding |
| Heineken NV |
Heineken Holding and Heineken Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heineken Holding and Heineken
The main advantage of trading using opposite Heineken Holding and Heineken positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heineken Holding position performs unexpectedly, Heineken 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 Heineken will offset losses from the drop in Heineken's long position.| Heineken Holding vs. Heineken NV | Heineken Holding vs. Anheuser Busch InBev SANV | Heineken Holding vs. Tsingtao Brewery Co | Heineken Holding vs. Carlsberg AS |
| Heineken vs. Anheuser Busch InBev SANV | Heineken vs. Carlsberg AS | Heineken vs. Molson Coors Brewing | Heineken vs. Compania Cervecerias Unidas |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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