Correlation Between Anheuser Busch and Celyad SA

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

Diversification Opportunities for Anheuser Busch and Celyad SA

-0.9

Correlation Coefficient

Anheuser Busch  Celyad SA

Pay attention - limited upside

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

Pair Corralation between Anheuser Busch and Celyad SA

Assuming the 90 days trading horizon Anheuser Busch Inbev is expected to under-perform the Celyad SA. But the stock apears to be less risky and, when comparing its historical volatility, Anheuser Busch Inbev is 5.7 times less risky than Celyad SA. The stock trades about -0.39 of its potential returns per unit of risk. The Celyad SA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  65.00  in Celyad SA on September 22, 2024 and sell it today you would earn a total of  4.00  from holding Celyad SA or generate 6.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Anheuser Busch Inbev  vs.  Celyad SA

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 January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Celyad SA

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Celyad SA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Celyad SA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Anheuser Busch and Celyad SA

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

The idea behind Anheuser Busch Inbev and Celyad 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.