Correlation Between AMG Advanced and Molson Coors
Can any of the company-specific risk be diversified away by investing in both AMG Advanced and Molson Coors 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 AMG Advanced and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMG Advanced Metallurgical and Molson Coors Beverage, you can compare the effects of market volatilities on AMG Advanced and Molson Coors 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 AMG Advanced with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMG Advanced and Molson Coors.
Diversification Opportunities for AMG Advanced and Molson Coors
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMG and Molson is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding AMG Advanced Metallurgical and Molson Coors Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Beverage and AMG Advanced 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 AMG Advanced Metallurgical are associated (or correlated) with Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Beverage has no effect on the direction of AMG Advanced i.e., AMG Advanced and Molson Coors go up and down completely randomly.
Pair Corralation between AMG Advanced and Molson Coors
Assuming the 90 days trading horizon AMG Advanced Metallurgical is expected to under-perform the Molson Coors. In addition to that, AMG Advanced is 1.17 times more volatile than Molson Coors Beverage. It trades about -0.21 of its total potential returns per unit of risk. Molson Coors Beverage is currently generating about 0.33 per unit of volatility. If you would invest 5,507 in Molson Coors Beverage on September 2, 2024 and sell it today you would earn a total of 712.00 from holding Molson Coors Beverage or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMG Advanced Metallurgical vs. Molson Coors Beverage
Performance |
| Timeline |
| AMG Advanced Metallu |
| Molson Coors Beverage |
AMG Advanced and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMG Advanced and Molson Coors
The main advantage of trading using opposite AMG Advanced and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMG Advanced position performs unexpectedly, Molson Coors 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 Molson Coors will offset losses from the drop in Molson Coors' long position.| AMG Advanced vs. Uniper SE | AMG Advanced vs. Mulberry Group PLC | AMG Advanced vs. London Security Plc | AMG Advanced vs. Triad Group PLC |
| Molson Coors vs. Uniper SE | Molson Coors vs. Mulberry Group PLC | Molson Coors vs. London Security Plc | Molson Coors vs. Triad 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |