Correlation Between Anheuser Busch and STILLFRONT GRP
Can any of the company-specific risk be diversified away by investing in both Anheuser Busch and STILLFRONT GRP 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 Anheuser Busch and STILLFRONT GRP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anheuser Busch InBev SANV and STILLFRONT GRP AB, you can compare the effects of market volatilities on Anheuser Busch and STILLFRONT GRP 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 Anheuser Busch with a short position of STILLFRONT GRP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and STILLFRONT GRP.
Diversification Opportunities for Anheuser Busch and STILLFRONT GRP
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anheuser and STILLFRONT is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch InBev SANV and STILLFRONT GRP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STILLFRONT GRP AB and Anheuser Busch 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 Anheuser Busch InBev SANV are associated (or correlated) with STILLFRONT GRP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STILLFRONT GRP AB has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and STILLFRONT GRP go up and down completely randomly.
Pair Corralation between Anheuser Busch and STILLFRONT GRP
Assuming the 90 days trading horizon Anheuser Busch InBev SANV is expected to under-perform the STILLFRONT GRP. But the stock apears to be less risky and, when comparing its historical volatility, Anheuser Busch InBev SANV is 3.07 times less risky than STILLFRONT GRP. The stock trades about -0.07 of its potential returns per unit of risk. The STILLFRONT GRP AB is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 107.00 in STILLFRONT GRP AB on October 7, 2024 and sell it today you would lose (31.00) from holding STILLFRONT GRP AB or give up 28.97% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anheuser Busch InBev SANV vs. STILLFRONT GRP AB
Performance |
Timeline |
Anheuser Busch InBev |
STILLFRONT GRP AB |
Anheuser Busch and STILLFRONT GRP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anheuser Busch and STILLFRONT GRP
The main advantage of trading using opposite Anheuser Busch and STILLFRONT GRP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anheuser Busch position performs unexpectedly, STILLFRONT GRP 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 STILLFRONT GRP will offset losses from the drop in STILLFRONT GRP's long position.Anheuser Busch vs. Daito Trust Construction | Anheuser Busch vs. Titan Machinery | Anheuser Busch vs. ARDAGH METAL PACDL 0001 | Anheuser Busch vs. Jacquet Metal Service |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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