Correlation Between Molson Coors and Vitec Software
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Vitec Software 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 Vitec Software 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 Vitec Software Group, you can compare the effects of market volatilities on Molson Coors and Vitec Software 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 Vitec Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Vitec Software.
Diversification Opportunities for Molson Coors and Vitec Software
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molson and Vitec is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Vitec Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitec Software Group 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 Vitec Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitec Software Group has no effect on the direction of Molson Coors i.e., Molson Coors and Vitec Software go up and down completely randomly.
Pair Corralation between Molson Coors and Vitec Software
Assuming the 90 days trading horizon Molson Coors Beverage is expected to generate 0.58 times more return on investment than Vitec Software. However, Molson Coors Beverage is 1.72 times less risky than Vitec Software. It trades about 0.2 of its potential returns per unit of risk. Vitec Software Group is currently generating about -0.04 per unit of risk. If you would invest 5,524 in Molson Coors Beverage on September 3, 2024 and sell it today you would earn a total of 695.00 from holding Molson Coors Beverage or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Beverage vs. Vitec Software Group
Performance |
| Timeline |
| Molson Coors Beverage |
| Vitec Software Group |
Molson Coors and Vitec Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Vitec Software
The main advantage of trading using opposite Molson Coors and Vitec Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Vitec Software 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 Vitec Software will offset losses from the drop in Vitec Software's long position.| Molson Coors vs. Catalyst Media Group | Molson Coors vs. CATLIN GROUP | Molson Coors vs. Magnora ASA | Molson Coors vs. RTW Venture Fund |
| Vitec Software vs. Compagnie Plastic Omnium | Vitec Software vs. Iron Mountain | Vitec Software vs. Vulcan Materials Co | Vitec Software vs. Applied Materials |
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.
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