Correlation Between Anheuser Busch and Contextlogic

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

Diversification Opportunities for Anheuser Busch and Contextlogic

-0.48

Correlation Coefficient

Anheuser Busch  Contextlogic

Very good diversification

The 3 months correlation between Anheuser and Contextlogic is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch Inbev and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic 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 Contextlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contextlogic has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and Contextlogic go up and down completely randomly.

Pair Corralation between Anheuser Busch and Contextlogic

Considering the 90-day investment horizon Anheuser Busch Inbev is expected to generate 0.4 times more return on investment than Contextlogic. However, Anheuser Busch Inbev is 2.49 times less risky than Contextlogic. It trades about -0.06 of its potential returns per unit of risk. Contextlogic is currently generating about -0.08 per unit of risk. If you would invest  6,977  in Anheuser Busch Inbev on May 28, 2025 and sell it today you would lose (591.00) from holding Anheuser Busch Inbev or give up 8.47% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	29.03%
Values	Daily Returns

Anheuser Busch Inbev  vs.  Contextlogic

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.

Contextlogic

Risk-Adjusted Performance

Weakest

Over the last 90 days Contextlogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Anheuser Busch and Contextlogic

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

The idea behind Anheuser Busch Inbev and Contextlogic 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.