Correlation Between Viking Holdings and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both Viking Holdings 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 Viking Holdings and Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Viking Holdings and Anheuser Busch Inbev, you can compare the effects of market volatilities on Viking Holdings 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 Viking Holdings with a short position of Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viking Holdings and Anheuser Busch.
Diversification Opportunities for Viking Holdings and Anheuser Busch
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Viking and Anheuser is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Viking Holdings 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 Viking Holdings 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 Viking Holdings 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 Viking Holdings i.e., Viking Holdings and Anheuser Busch go up and down completely randomly.
Pair Corralation between Viking Holdings and Anheuser Busch
Considering the 90-day investment horizon Viking Holdings is expected to generate 1.83 times more return on investment than Anheuser Busch. However, Viking Holdings is 1.83 times more volatile than Anheuser Busch Inbev. It trades about 0.16 of its potential returns per unit of risk. Anheuser Busch Inbev is currently generating about -0.01 per unit of risk. If you would invest 2,610 in Viking Holdings on September 12, 2024 and sell it today you would earn a total of 1,849 from holding Viking Holdings or generate 70.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 44.03% |
| Values | Daily Returns |
Viking Holdings vs. Anheuser Busch Inbev
Performance |
| Timeline |
| Viking Holdings |
| Anheuser Busch Inbev |
Viking Holdings and Anheuser Busch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viking Holdings and Anheuser Busch
The main advantage of trading using opposite Viking Holdings and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viking Holdings 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.| Viking Holdings vs. Udemy Inc | Viking Holdings vs. 51Talk Online Education | Viking Holdings vs. Celsius Holdings | Viking Holdings vs. Ambev SA ADR |
| Anheuser Busch vs. Boston Beer | Anheuser Busch vs. Molson Coors Beverage | Anheuser Busch vs. Heineken NV | Anheuser Busch vs. Ambev SA ADR |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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