Correlation Between Carlsberg A/S and Ambev SA
Can any of the company-specific risk be diversified away by investing in both Carlsberg A/S and Ambev 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 Carlsberg A/S and Ambev SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and Ambev SA ADR, you can compare the effects of market volatilities on Carlsberg A/S and Ambev 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 Carlsberg A/S with a short position of Ambev SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg A/S and Ambev SA.
Diversification Opportunities for Carlsberg A/S and Ambev SA
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Carlsberg and Ambev is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Ambev SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambev SA ADR and Carlsberg A/S 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 Carlsberg AS are associated (or correlated) with Ambev SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambev SA ADR has no effect on the direction of Carlsberg A/S i.e., Carlsberg A/S and Ambev SA go up and down completely randomly.
Pair Corralation between Carlsberg A/S and Ambev SA
Assuming the 90 days horizon Carlsberg AS is expected to generate 1.89 times more return on investment than Ambev SA. However, Carlsberg A/S is 1.89 times more volatile than Ambev SA ADR. It trades about -0.02 of its potential returns per unit of risk. Ambev SA ADR is currently generating about -0.26 per unit of risk. If you would invest 13,625 in Carlsberg AS on January 27, 2024 and sell it today you would lose (225.00) from holding Carlsberg AS or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg AS vs. Ambev SA ADR
Performance |
| Timeline |
| Carlsberg A/S |
| Ambev SA ADR |
Carlsberg A/S and Ambev SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg A/S and Ambev SA
The main advantage of trading using opposite Carlsberg A/S and Ambev SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg A/S position performs unexpectedly, Ambev 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 Ambev SA will offset losses from the drop in Ambev SA's long position.| Carlsberg A/S vs. Barfresh Food Group | Carlsberg A/S vs. Fbec Worldwide | Carlsberg A/S vs. Flow Beverage Corp | Carlsberg A/S vs. Eq Energy Drink |
| Ambev SA vs. Molson Coors Beverage | Ambev SA vs. Fomento Economico Mexicano | Ambev SA vs. Carlsberg AS | Ambev SA vs. Heineken NV |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |