Correlation Between Anheuser Busch and Post Holdings

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

Diversification Opportunities for Anheuser Busch and Post Holdings

0.39

Correlation Coefficient

Anheuser Busch  Post Holdings

Weak diversification

The 3 months correlation between Anheuser and Post is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Anheuser Busch Inbev and Post Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Post Holdings 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 Post Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Post Holdings has no effect on the direction of Anheuser Busch i.e., Anheuser Busch and Post Holdings go up and down completely randomly.

Pair Corralation between Anheuser Busch and Post Holdings

Considering the 90-day investment horizon Anheuser Busch Inbev is expected to under-perform the Post Holdings. In addition to that, Anheuser Busch is 1.51 times more volatile than Post Holdings. It trades about -0.06 of its total potential returns per unit of risk. Post Holdings is currently generating about 0.0 per unit of volatility. If you would invest  10,613  in Post Holdings on July 20, 2025 and sell it today you would lose (31.00) from holding Post Holdings or give up 0.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Anheuser Busch Inbev  vs.  Post Holdings

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.

Post Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Post Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Post Holdings is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Anheuser Busch and Post Holdings

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

The idea behind Anheuser Busch Inbev and Post Holdings 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.