Correlation Between Molson Coors and Atresmedia
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Atresmedia 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 Atresmedia 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 Atresmedia, you can compare the effects of market volatilities on Molson Coors and Atresmedia 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 Atresmedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Atresmedia.
Diversification Opportunities for Molson Coors and Atresmedia
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Molson and Atresmedia is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Atresmedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atresmedia 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 Atresmedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atresmedia has no effect on the direction of Molson Coors i.e., Molson Coors and Atresmedia go up and down completely randomly.
Pair Corralation between Molson Coors and Atresmedia
Assuming the 90 days trading horizon Molson Coors Beverage is expected to under-perform the Atresmedia. In addition to that, Molson Coors is 2.53 times more volatile than Atresmedia. It trades about -0.08 of its total potential returns per unit of risk. Atresmedia is currently generating about -0.08 per unit of volatility. If you would invest 447.00 in Atresmedia on November 3, 2024 and sell it today you would lose (7.00) from holding Atresmedia or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Beverage vs. Atresmedia
Performance |
| Timeline |
| Molson Coors Beverage |
| Atresmedia |
Molson Coors and Atresmedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Atresmedia
The main advantage of trading using opposite Molson Coors and Atresmedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Atresmedia 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 Atresmedia will offset losses from the drop in Atresmedia's long position.| Molson Coors vs. Dentsply Sirona | Molson Coors vs. Seche Environnement SA | Molson Coors vs. Polar Capital Technology | Molson Coors vs. Veolia Environnement VE |
| Atresmedia vs. European Metals Holdings | Atresmedia vs. Silvercorp Metals | Atresmedia vs. Europa Metals | Atresmedia vs. Gear4music 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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