Correlation Between Molson Coors and Anheuser-Busch InBev
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Anheuser-Busch InBev 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 Molson Coors and Anheuser-Busch InBev into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molson Coors Brewing and Anheuser Busch InBev SANV, you can compare the effects of market volatilities on Molson Coors and Anheuser-Busch InBev 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 Molson Coors with a short position of Anheuser-Busch InBev. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Anheuser-Busch InBev.
Diversification Opportunities for Molson Coors and Anheuser-Busch InBev
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Molson and Anheuser-Busch is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Anheuser Busch InBev SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anheuser Busch InBev and Molson Coors 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 Molson Coors Brewing are associated (or correlated) with Anheuser-Busch InBev. 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 Molson Coors i.e., Molson Coors and Anheuser-Busch InBev go up and down completely randomly.
Pair Corralation between Molson Coors and Anheuser-Busch InBev
Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 1.06 times more return on investment than Anheuser-Busch InBev. However, Molson Coors is 1.06 times more volatile than Anheuser Busch InBev SANV. It trades about 0.22 of its potential returns per unit of risk. Anheuser Busch InBev SANV is currently generating about -0.5 per unit of risk. If you would invest 5,601 in Molson Coors Brewing on August 27, 2024 and sell it today you would earn a total of 435.00 from holding Molson Coors Brewing or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Brewing vs. Anheuser Busch InBev SANV
Performance |
| Timeline |
| Molson Coors Brewing |
| Anheuser Busch InBev |
Molson Coors and Anheuser-Busch InBev Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Anheuser-Busch InBev
The main advantage of trading using opposite Molson Coors and Anheuser-Busch InBev positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Anheuser-Busch InBev 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 InBev will offset losses from the drop in Anheuser-Busch InBev's long position.| Molson Coors vs. Budweiser Brewing | Molson Coors vs. Boston Beer | Molson Coors vs. Anheuser Busch InBev SANV | Molson Coors vs. Ambev SA ADR |
| Anheuser-Busch InBev vs. Barfresh Food Group | Anheuser-Busch InBev vs. Fbec Worldwide | Anheuser-Busch InBev vs. Flow Beverage Corp | Anheuser-Busch InBev vs. Eq Energy Drink |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |