Correlation Between Molson Coors and PPHE Hotel
Can any of the company-specific risk be diversified away by investing in both Molson Coors and PPHE Hotel 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 PPHE Hotel 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 PPHE Hotel Group, you can compare the effects of market volatilities on Molson Coors and PPHE Hotel 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 PPHE Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and PPHE Hotel.
Diversification Opportunities for Molson Coors and PPHE Hotel
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molson and PPHE is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and PPHE Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPHE Hotel 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 PPHE Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPHE Hotel Group has no effect on the direction of Molson Coors i.e., Molson Coors and PPHE Hotel go up and down completely randomly.
Pair Corralation between Molson Coors and PPHE Hotel
Assuming the 90 days trading horizon Molson Coors Beverage is expected to generate 1.51 times more return on investment than PPHE Hotel. However, Molson Coors is 1.51 times more volatile than PPHE Hotel Group. It trades about 0.29 of its potential returns per unit of risk. PPHE Hotel Group is currently generating about -0.22 per unit of risk. If you would invest 5,573 in Molson Coors Beverage on September 4, 2024 and sell it today you would earn a total of 620.00 from holding Molson Coors Beverage or generate 11.13% 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. PPHE Hotel Group
Performance |
| Timeline |
| Molson Coors Beverage |
| PPHE Hotel Group |
Molson Coors and PPHE Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and PPHE Hotel
The main advantage of trading using opposite Molson Coors and PPHE Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, PPHE Hotel 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 PPHE Hotel will offset losses from the drop in PPHE Hotel's long position.| Molson Coors vs. Samsung Electronics Co | Molson Coors vs. Samsung Electronics Co | Molson Coors vs. Hyundai Motor | Molson Coors vs. Toyota Motor Corp |
| PPHE Hotel vs. BYD Co | PPHE Hotel vs. Volkswagen AG | PPHE Hotel vs. Volkswagen AG Non Vtg | PPHE Hotel vs. Compass Group 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |