Correlation Between Royal Unibrew and Anheuser Busch

Can any of the company-specific risk be diversified away by investing in both Royal Unibrew and Anheuser Busch 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 Royal Unibrew and Anheuser Busch into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Royal Unibrew AS and Anheuser Busch InBev SANV, you can compare the effects of market volatilities on Royal Unibrew and Anheuser Busch 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 Royal Unibrew with a short position of Anheuser Busch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Royal Unibrew and Anheuser Busch.

Diversification Opportunities for Royal Unibrew and Anheuser Busch

0.39

Correlation Coefficient

Royal Unibrew  Anheuser Busch

Weak diversification

The 3 months correlation between Royal and Anheuser is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Royal Unibrew AS 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 Royal Unibrew 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 Royal Unibrew AS are associated (or correlated) with Anheuser Busch. 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 Royal Unibrew i.e., Royal Unibrew and Anheuser Busch go up and down completely randomly.

Pair Corralation between Royal Unibrew and Anheuser Busch

Assuming the 90 days horizon Royal Unibrew AS is expected to under-perform the Anheuser Busch. In addition to that, Royal Unibrew is 2.98 times more volatile than Anheuser Busch InBev SANV. It trades about -0.02 of its total potential returns per unit of risk. Anheuser Busch InBev SANV is currently generating about 0.03 per unit of volatility. If you would invest  5,656  in Anheuser Busch InBev SANV on April 24, 2025 and sell it today you would earn a total of  94.00  from holding Anheuser Busch InBev SANV or generate 1.66% return on investment over 90 days.

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

Royal Unibrew AS  vs.  Anheuser Busch InBev SANV

Royal Unibrew AS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Royal Unibrew AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Royal Unibrew is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Anheuser Busch InBev

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Anheuser Busch InBev SANV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable forward-looking signals, Anheuser Busch is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Royal Unibrew and Anheuser Busch

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

The idea behind Royal Unibrew AS and Anheuser Busch InBev SANV 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.