Correlation Between Molson Coors and Oakley Capital
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Oakley Capital 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 Oakley Capital 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 Oakley Capital Investments, you can compare the effects of market volatilities on Molson Coors and Oakley Capital 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 Oakley Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Oakley Capital.
Diversification Opportunities for Molson Coors and Oakley Capital
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molson and Oakley is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Oakley Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakley Capital Inves 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 Oakley Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakley Capital Inves has no effect on the direction of Molson Coors i.e., Molson Coors and Oakley Capital go up and down completely randomly.
Pair Corralation between Molson Coors and Oakley Capital
Assuming the 90 days trading horizon Molson Coors Beverage is expected to generate 1.77 times more return on investment than Oakley Capital. However, Molson Coors is 1.77 times more volatile than Oakley Capital Investments. It trades about 0.09 of its potential returns per unit of risk. Oakley Capital Investments is currently generating about -0.02 per unit of risk. If you would invest 5,244 in Molson Coors Beverage on September 1, 2024 and sell it today you would earn a total of 975.00 from holding Molson Coors Beverage or generate 18.59% 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. Oakley Capital Investments
Performance |
| Timeline |
| Molson Coors Beverage |
| Oakley Capital Inves |
Molson Coors and Oakley Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Oakley Capital
The main advantage of trading using opposite Molson Coors and Oakley Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Oakley Capital 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 Oakley Capital will offset losses from the drop in Oakley Capital'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 |
| Oakley Capital vs. Monster Beverage Corp | Oakley Capital vs. Flutter Entertainment PLC | Oakley Capital vs. AMG Advanced Metallurgical | Oakley Capital vs. LBG Media 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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