Correlation Between Anheuser Busch and ENGIE Eps

Can any of the company-specific risk be diversified away by investing in both Anheuser Busch and ENGIE Eps 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 ENGIE Eps 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 ENGIE Eps SA, you can compare the effects of market volatilities on Anheuser Busch and ENGIE Eps 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 ENGIE Eps. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and ENGIE Eps.

Diversification Opportunities for Anheuser Busch and ENGIE Eps

-0.88

Correlation Coefficient

Anheuser Busch  ENGIE Eps

Pay attention - limited upside

The 3 months correlation between Anheuser and ENGIE is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch InBev SANV and ENGIE Eps SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENGIE Eps SA 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 ENGIE Eps. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENGIE Eps SA has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and ENGIE Eps go up and down completely randomly.

Pair Corralation between Anheuser Busch and ENGIE Eps

If you would invest  120.00  in ENGIE Eps SA on October 8, 2024 and sell it today you would earn a total of  0.00  from holding ENGIE Eps SA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	18.75%
Values	Daily Returns

Anheuser Busch InBev SANV  vs.  ENGIE Eps SA

Anheuser Busch InBev

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anheuser Busch InBev SANV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

ENGIE Eps SA

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days ENGIE Eps SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, ENGIE Eps reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anheuser Busch and ENGIE Eps

The main advantage of trading using opposite Anheuser Busch and ENGIE Eps positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anheuser Busch position performs unexpectedly, ENGIE Eps 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 ENGIE Eps will offset losses from the drop in ENGIE Eps' long position.

The idea behind Anheuser Busch InBev SANV and ENGIE Eps SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.