Correlation Between ATS and Anheuser Busch
Can any of the company-specific risk be diversified away by investing in both ATS 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 ATS and Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATS Corporation and Anheuser Busch Inbev, you can compare the effects of market volatilities on ATS 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 ATS with a short position of Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATS and Anheuser Busch.
Diversification Opportunities for ATS and Anheuser Busch
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ATS and Anheuser is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding ATS Corp. 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 ATS 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 ATS Corporation 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 ATS i.e., ATS and Anheuser Busch go up and down completely randomly.
Pair Corralation between ATS and Anheuser Busch
Considering the 90-day investment horizon ATS Corporation is expected to generate 1.79 times more return on investment than Anheuser Busch. However, ATS is 1.79 times more volatile than Anheuser Busch Inbev. It trades about -0.11 of its potential returns per unit of risk. Anheuser Busch Inbev is currently generating about -0.35 per unit of risk. If you would invest 3,181 in ATS Corporation on October 20, 2024 and sell it today you would lose (531.00) from holding ATS Corporation or give up 16.69% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ATS Corp. vs. Anheuser Busch Inbev
Performance |
Timeline |
ATS Corporation |
Anheuser Busch Inbev |
ATS and Anheuser Busch Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ATS and Anheuser Busch
The main advantage of trading using opposite ATS and Anheuser Busch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATS 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.ATS vs. The Andersons | ATS vs. United Natural Foods | ATS vs. AMCON Distributing | ATS vs. Pintec Technology Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |