Correlation Between Anheuser Busch and CHS

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

Diversification Opportunities for Anheuser Busch and CHS

-0.76

Correlation Coefficient

Anheuser Busch  CHS

Pay attention - limited upside

The 3 months correlation between Anheuser and CHS is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch Inbev and CHS Inc CN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHS Inc CN 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 CHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHS Inc CN has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and CHS go up and down completely randomly.

Pair Corralation between Anheuser Busch and CHS

Considering the 90-day investment horizon Anheuser Busch Inbev is expected to under-perform the CHS. In addition to that, Anheuser Busch is 6.25 times more volatile than CHS Inc CN. It trades about -0.08 of its total potential returns per unit of risk. CHS Inc CN is currently generating about 0.1 per unit of volatility. If you would invest  2,457  in CHS Inc CN on July 11, 2025 and sell it today you would earn a total of  53.00  from holding CHS Inc CN or generate 2.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Anheuser Busch Inbev  vs.  CHS Inc CN

Anheuser Busch Inbev

Risk-Adjusted Performance

Weakest

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 latest unfluctuating performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

CHS Inc CN

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CHS Inc CN are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, CHS is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Anheuser Busch and CHS

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

The idea behind Anheuser Busch Inbev and CHS Inc CN 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.