Correlation Between Molson Coors and Lowland Investment
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Lowland Investment 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 Lowland Investment 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 Lowland Investment Co, you can compare the effects of market volatilities on Molson Coors and Lowland Investment 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 Lowland Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Lowland Investment.
Diversification Opportunities for Molson Coors and Lowland Investment
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molson and Lowland is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Lowland Investment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lowland Investment 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 Lowland Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lowland Investment has no effect on the direction of Molson Coors i.e., Molson Coors and Lowland Investment go up and down completely randomly.
Pair Corralation between Molson Coors and Lowland Investment
Assuming the 90 days trading horizon Molson Coors is expected to generate 1.3 times less return on investment than Lowland Investment. In addition to that, Molson Coors is 1.61 times more volatile than Lowland Investment Co. It trades about 0.03 of its total potential returns per unit of risk. Lowland Investment Co is currently generating about 0.06 per unit of volatility. If you would invest 11,161 in Lowland Investment Co on September 14, 2024 and sell it today you would earn a total of 1,589 from holding Lowland Investment Co or generate 14.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.52% |
| Values | Daily Returns |
Molson Coors Beverage vs. Lowland Investment Co
Performance |
| Timeline |
| Molson Coors Beverage |
| Lowland Investment |
Molson Coors and Lowland Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Lowland Investment
The main advantage of trading using opposite Molson Coors and Lowland Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Lowland Investment 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 Lowland Investment will offset losses from the drop in Lowland Investment's long position.| Molson Coors vs. Evolution Gaming Group | Molson Coors vs. Air Products Chemicals | Molson Coors vs. PureTech Health plc | Molson Coors vs. Universal Health Services |
| Lowland Investment vs. Catalyst Media Group | Lowland Investment vs. CATLIN GROUP | Lowland Investment vs. Tamburi Investment Partners | Lowland Investment vs. Magnora ASA |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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