Correlation Between Molson Coors and Wheaton Precious
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Wheaton Precious 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 Wheaton Precious 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 Wheaton Precious Metals, you can compare the effects of market volatilities on Molson Coors and Wheaton Precious 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 Wheaton Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Wheaton Precious.
Diversification Opportunities for Molson Coors and Wheaton Precious
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Molson and Wheaton is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Wheaton Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheaton Precious Metals 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 Wheaton Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheaton Precious Metals has no effect on the direction of Molson Coors i.e., Molson Coors and Wheaton Precious go up and down completely randomly.
Pair Corralation between Molson Coors and Wheaton Precious
Assuming the 90 days trading horizon Molson Coors Beverage is expected to generate 0.92 times more return on investment than Wheaton Precious. However, Molson Coors Beverage is 1.09 times less risky than Wheaton Precious. It trades about 0.25 of its potential returns per unit of risk. Wheaton Precious Metals is currently generating about -0.13 per unit of risk. If you would invest 5,586 in Molson Coors Beverage on August 30, 2024 and sell it today you would earn a total of 559.00 from holding Molson Coors Beverage or generate 10.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Beverage vs. Wheaton Precious Metals
Performance |
| Timeline |
| Molson Coors Beverage |
| Wheaton Precious Metals |
Molson Coors and Wheaton Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Wheaton Precious
The main advantage of trading using opposite Molson Coors and Wheaton Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Wheaton Precious 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 Wheaton Precious will offset losses from the drop in Wheaton Precious' long position.| Molson Coors vs. Tungsten West PLC | Molson Coors vs. Argo Group Limited | Molson Coors vs. Hardide PLC | Molson Coors vs. Versarien PLC |
| Wheaton Precious vs. Givaudan SA | Wheaton Precious vs. Antofagasta PLC | Wheaton Precious vs. Centamin PLC | Wheaton Precious vs. Atalaya Mining |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |