Correlation Between Anheuser Busch and ANZ Group

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

Diversification Opportunities for Anheuser Busch and ANZ Group

-0.36

Correlation Coefficient

Anheuser Busch  ANZ Group

Very good diversification

The 3 months correlation between Anheuser and ANZ is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch Inbev and ANZ Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZ Group Holdings 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 ANZ Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZ Group Holdings has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and ANZ Group go up and down completely randomly.

Pair Corralation between Anheuser Busch and ANZ Group

Considering the 90-day investment horizon Anheuser Busch Inbev is expected to under-perform the ANZ Group. But the stock apears to be less risky and, when comparing its historical volatility, Anheuser Busch Inbev is 1.05 times less risky than ANZ Group. The stock trades about -0.38 of its potential returns per unit of risk. The ANZ Group Holdings is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,991  in ANZ Group Holdings on September 5, 2024 and sell it today you would earn a total of  57.00  from holding ANZ Group Holdings or generate 2.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Anheuser Busch Inbev  vs.  ANZ Group Holdings

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. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ANZ Group Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANZ Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, ANZ Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Anheuser Busch and ANZ Group

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

The idea behind Anheuser Busch Inbev and ANZ Group Holdings 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.