Correlation Between Molson Coors and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Halyk Bank 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 Halyk Bank 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 Halyk Bank of, you can compare the effects of market volatilities on Molson Coors and Halyk Bank 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 Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Halyk Bank.
Diversification Opportunities for Molson Coors and Halyk Bank
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Molson and Halyk is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank 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 Halyk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halyk Bank has no effect on the direction of Molson Coors i.e., Molson Coors and Halyk Bank go up and down completely randomly.
Pair Corralation between Molson Coors and Halyk Bank
Assuming the 90 days trading horizon Molson Coors Beverage is expected to generate 0.88 times more return on investment than Halyk Bank. However, Molson Coors Beverage is 1.13 times less risky than Halyk Bank. It trades about 0.34 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.09 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Beverage vs. Halyk Bank of
Performance |
| Timeline |
| Molson Coors Beverage |
| Halyk Bank |
Molson Coors and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Halyk Bank
The main advantage of trading using opposite Molson Coors and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Halyk Bank 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 Halyk Bank will offset losses from the drop in Halyk Bank'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 |
| Halyk Bank vs. Associated British Foods | Halyk Bank vs. Molson Coors Beverage | Halyk Bank vs. Fevertree Drinks Plc | Halyk Bank vs. Monster Beverage Corp |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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