Correlation Between Heineken Holding and Ebusco Holding

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

By analyzing existing cross correlation between Heineken Holding NV and Ebusco Holding BV, you can compare the effects of market volatilities on Heineken Holding and Ebusco Holding 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 Heineken Holding with a short position of Ebusco Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heineken Holding and Ebusco Holding.

Diversification Opportunities for Heineken Holding and Ebusco Holding

-0.9

Correlation Coefficient

Heineken Holding  Ebusco Holding

Pay attention - limited upside

The 3 months correlation between Heineken and Ebusco is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Heineken Holding NV and Ebusco Holding BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebusco Holding BV and Heineken Holding 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 Heineken Holding NV are associated (or correlated) with Ebusco Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebusco Holding BV has no effect on the direction of Heineken Holding i.e., Heineken Holding and Ebusco Holding go up and down completely randomly.

Pair Corralation between Heineken Holding and Ebusco Holding

Assuming the 90 days trading horizon Heineken Holding NV is expected to generate 0.49 times more return on investment than Ebusco Holding. However, Heineken Holding NV is 2.04 times less risky than Ebusco Holding. It trades about 0.14 of its potential returns per unit of risk. Ebusco Holding BV is currently generating about -0.26 per unit of risk. If you would invest  5,735  in Heineken Holding NV on December 23, 2024 and sell it today you would earn a total of  1,080  from holding Heineken Holding NV or generate 18.83% return on investment over 90 days.

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

Heineken Holding NV  vs.  Ebusco Holding BV

Heineken Holding

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Heineken Holding NV are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Heineken Holding unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ebusco Holding BV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ebusco Holding BV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Heineken Holding and Ebusco Holding

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

The idea behind Heineken Holding NV and Ebusco Holding BV 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.