Correlation Between Atresmedia and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Atresmedia 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 Atresmedia and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atresmedia and Molson Coors Beverage, you can compare the effects of market volatilities on Atresmedia 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 Atresmedia with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atresmedia and Molson Coors.
Diversification Opportunities for Atresmedia and Molson Coors
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Atresmedia and Molson is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Atresmedia 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 Atresmedia 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 Atresmedia 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 Atresmedia i.e., Atresmedia and Molson Coors go up and down completely randomly.
Pair Corralation between Atresmedia and Molson Coors
Assuming the 90 days trading horizon Atresmedia is expected to generate 0.4 times more return on investment than Molson Coors. However, Atresmedia is 2.53 times less risky than Molson Coors. It trades about -0.08 of its potential returns per unit of risk. Molson Coors Beverage is currently generating about -0.08 per unit of risk. If you would invest 447.00 in Atresmedia on November 3, 2024 and sell it today you would lose (7.00) from holding Atresmedia or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atresmedia vs. Molson Coors Beverage
Performance |
| Timeline |
| Atresmedia |
| Molson Coors Beverage |
Atresmedia and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atresmedia and Molson Coors
The main advantage of trading using opposite Atresmedia and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atresmedia 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.| Atresmedia vs. European Metals Holdings | Atresmedia vs. Silvercorp Metals | Atresmedia vs. Europa Metals | Atresmedia vs. Gear4music Plc |
| Molson Coors vs. Dentsply Sirona | Molson Coors vs. Seche Environnement SA | Molson Coors vs. Polar Capital Technology | Molson Coors vs. Veolia Environnement VE |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |