Correlation Between CN MODERN and Molson Coors
Can any of the company-specific risk be diversified away by investing in both CN MODERN and Molson Coors 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 CN MODERN and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN MODERN DAIRY and Molson Coors Beverage, you can compare the effects of market volatilities on CN MODERN and Molson Coors 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 CN MODERN with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN MODERN and Molson Coors.
Diversification Opportunities for CN MODERN and Molson Coors
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 07M and Molson is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding CN MODERN DAIRY and Molson Coors Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Beverage and CN MODERN 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 CN MODERN DAIRY are associated (or correlated) with Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Beverage has no effect on the direction of CN MODERN i.e., CN MODERN and Molson Coors go up and down completely randomly.
Pair Corralation between CN MODERN and Molson Coors
Assuming the 90 days trading horizon CN MODERN is expected to generate 1.45 times less return on investment than Molson Coors. In addition to that, CN MODERN is 1.75 times more volatile than Molson Coors Beverage. It trades about 0.01 of its total potential returns per unit of risk. Molson Coors Beverage is currently generating about 0.03 per unit of volatility. If you would invest 4,730 in Molson Coors Beverage on August 29, 2024 and sell it today you would earn a total of 1,050 from holding Molson Coors Beverage or generate 22.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CN MODERN DAIRY vs. Molson Coors Beverage
Performance |
| Timeline |
| CN MODERN DAIRY |
| Molson Coors Beverage |
CN MODERN and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN MODERN and Molson Coors
The main advantage of trading using opposite CN MODERN and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN MODERN position performs unexpectedly, Molson Coors 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 Molson Coors will offset losses from the drop in Molson Coors' long position.| CN MODERN vs. Apple Inc | CN MODERN vs. Apple Inc | CN MODERN vs. Superior Plus Corp | CN MODERN vs. SIVERS SEMICONDUCTORS AB |
| Molson Coors vs. DiamondRock Hospitality | Molson Coors vs. Merit Medical Systems | Molson Coors vs. YOOMA WELLNESS INC | Molson Coors vs. Bumrungrad Hospital Public |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |