Correlation Between Molson Coors and Solstad Offshore
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Solstad Offshore 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 Molson Coors and Solstad Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molson Coors Beverage and Solstad Offshore ASA, you can compare the effects of market volatilities on Molson Coors and Solstad Offshore 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 Molson Coors with a short position of Solstad Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Solstad Offshore.
Diversification Opportunities for Molson Coors and Solstad Offshore
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Molson and Solstad is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Solstad Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offshore ASA and Molson Coors 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 Molson Coors Beverage are associated (or correlated) with Solstad Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offshore ASA has no effect on the direction of Molson Coors i.e., Molson Coors and Solstad Offshore go up and down completely randomly.
Pair Corralation between Molson Coors and Solstad Offshore
Assuming the 90 days trading horizon Molson Coors Beverage is expected to under-perform the Solstad Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Molson Coors Beverage is 2.44 times less risky than Solstad Offshore. The stock trades about -0.44 of its potential returns per unit of risk. The Solstad Offshore ASA is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 4,030 in Solstad Offshore ASA on October 10, 2024 and sell it today you would lose (70.00) from holding Solstad Offshore ASA or give up 1.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Molson Coors Beverage vs. Solstad Offshore ASA
Performance |
| Timeline |
| Molson Coors Beverage |
| Solstad Offshore ASA |
Molson Coors and Solstad Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Solstad Offshore
The main advantage of trading using opposite Molson Coors and Solstad Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Solstad Offshore 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 Solstad Offshore will offset losses from the drop in Solstad Offshore's long position.| Molson Coors vs. Primary Health Properties | Molson Coors vs. Abingdon Health Plc | Molson Coors vs. Planet Fitness Cl | Molson Coors vs. Cizzle Biotechnology Holdings |
| Solstad Offshore vs. Veolia Environnement VE | Solstad Offshore vs. Beowulf Mining | Solstad Offshore vs. Tata Steel Limited | Solstad Offshore vs. Thor Mining PLC |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |