Correlation Between Molson Coors and Catalyst Media
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Catalyst Media 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 Catalyst Media 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 Catalyst Media Group, you can compare the effects of market volatilities on Molson Coors and Catalyst Media 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 Catalyst Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Catalyst Media.
Diversification Opportunities for Molson Coors and Catalyst Media
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Molson and Catalyst is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Catalyst Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Media 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 Catalyst Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Media Group has no effect on the direction of Molson Coors i.e., Molson Coors and Catalyst Media go up and down completely randomly.
Pair Corralation between Molson Coors and Catalyst Media
Assuming the 90 days trading horizon Molson Coors Beverage is expected to generate 0.85 times more return on investment than Catalyst Media. However, Molson Coors Beverage is 1.18 times less risky than Catalyst Media. It trades about 0.1 of its potential returns per unit of risk. Catalyst Media Group is currently generating about 0.06 per unit of risk. If you would invest 5,672 in Molson Coors Beverage on September 3, 2024 and sell it today you would earn a total of 547.00 from holding Molson Coors Beverage or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Beverage vs. Catalyst Media Group
Performance |
| Timeline |
| Molson Coors Beverage |
| Catalyst Media Group |
Molson Coors and Catalyst Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Catalyst Media
The main advantage of trading using opposite Molson Coors and Catalyst Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Catalyst Media 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 Catalyst Media will offset losses from the drop in Catalyst Media's long position.| Molson Coors vs. Catalyst Media Group | Molson Coors vs. CATLIN GROUP | Molson Coors vs. Tamburi Investment Partners | Molson Coors vs. Magnora ASA |
| Catalyst Media vs. Smithson Investment Trust | Catalyst Media vs. Kinnevik Investment AB | Catalyst Media vs. New Residential Investment | Catalyst Media vs. The Mercantile Investment |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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