Correlation Between Anheuser Busch and Immo Moury

Can any of the company-specific risk be diversified away by investing in both Anheuser Busch and Immo Moury 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 Immo Moury into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Anheuser Busch Inbev and Immo Moury SICAF, you can compare the effects of market volatilities on Anheuser Busch and Immo Moury 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 Immo Moury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anheuser Busch and Immo Moury.

Diversification Opportunities for Anheuser Busch and Immo Moury

0.74

Correlation Coefficient

Anheuser Busch  Immo Moury

Poor diversification

The 3 months correlation between Anheuser and Immo is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch Inbev and Immo Moury SICAF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immo Moury SICAF 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 are associated (or correlated) with Immo Moury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immo Moury SICAF has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and Immo Moury go up and down completely randomly.

Pair Corralation between Anheuser Busch and Immo Moury

Assuming the 90 days trading horizon Anheuser Busch Inbev is expected to under-perform the Immo Moury. But the stock apears to be less risky and, when comparing its historical volatility, Anheuser Busch Inbev is 1.15 times less risky than Immo Moury. The stock trades about -0.17 of its potential returns per unit of risk. The Immo Moury SICAF is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  3,140  in Immo Moury SICAF on October 25, 2024 and sell it today you would lose (60.00) from holding Immo Moury SICAF or give up 1.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Anheuser Busch Inbev  vs.  Immo Moury SICAF

Anheuser Busch Inbev

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Anheuser Busch Inbev has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Immo Moury SICAF

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Immo Moury SICAF has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental drivers remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Anheuser Busch and Immo Moury

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

The idea behind Anheuser Busch Inbev and Immo Moury SICAF 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.