Correlation Between Molson Coors and Eastinco Mining
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Eastinco Mining 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 Eastinco Mining 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 Eastinco Mining Exploration, you can compare the effects of market volatilities on Molson Coors and Eastinco Mining 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 Eastinco Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Eastinco Mining.
Diversification Opportunities for Molson Coors and Eastinco Mining
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molson and Eastinco is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Eastinco Mining Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastinco Mining Expl 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 Eastinco Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastinco Mining Expl has no effect on the direction of Molson Coors i.e., Molson Coors and Eastinco Mining go up and down completely randomly.
Pair Corralation between Molson Coors and Eastinco Mining
Assuming the 90 days trading horizon Molson Coors Beverage is expected to generate 3.39 times more return on investment than Eastinco Mining. However, Molson Coors is 3.39 times more volatile than Eastinco Mining Exploration. It trades about 0.34 of its potential returns per unit of risk. Eastinco Mining Exploration is currently generating about 0.36 per unit of risk. If you would invest 5,490 in Molson Coors Beverage on September 1, 2024 and sell it today you would earn a total of 729.00 from holding Molson Coors Beverage or generate 13.28% 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. Eastinco Mining Exploration
Performance |
| Timeline |
| Molson Coors Beverage |
| Eastinco Mining Expl |
Molson Coors and Eastinco Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Eastinco Mining
The main advantage of trading using opposite Molson Coors and Eastinco Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Eastinco Mining 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 Eastinco Mining will offset losses from the drop in Eastinco Mining's long position.| Molson Coors vs. Uniper SE | Molson Coors vs. Mulberry Group PLC | Molson Coors vs. London Security Plc | Molson Coors vs. Triad Group PLC |
| Eastinco Mining vs. Wizz Air Holdings | Eastinco Mining vs. Molson Coors Beverage | Eastinco Mining vs. Porvair plc | Eastinco Mining vs. Mindflair 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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