Correlation Between Xenia Hotels and MOLSON COORS
Can any of the company-specific risk be diversified away by investing in both Xenia Hotels 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 Xenia Hotels and MOLSON COORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xenia Hotels Resorts and MOLSON RS BEVERAGE, you can compare the effects of market volatilities on Xenia Hotels 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 Xenia Hotels with a short position of MOLSON COORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xenia Hotels and MOLSON COORS.
Diversification Opportunities for Xenia Hotels and MOLSON COORS
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xenia and MOLSON is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Xenia Hotels Resorts and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE and Xenia Hotels 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 Xenia Hotels Resorts 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 RS BEVERAGE has no effect on the direction of Xenia Hotels i.e., Xenia Hotels and MOLSON COORS go up and down completely randomly.
Pair Corralation between Xenia Hotels and MOLSON COORS
Assuming the 90 days trading horizon Xenia Hotels Resorts is expected to generate 0.8 times more return on investment than MOLSON COORS. However, Xenia Hotels Resorts is 1.25 times less risky than MOLSON COORS. It trades about 0.05 of its potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about 0.0 per unit of risk. If you would invest 1,158 in Xenia Hotels Resorts on November 3, 2024 and sell it today you would earn a total of 252.00 from holding Xenia Hotels Resorts or generate 21.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xenia Hotels Resorts vs. MOLSON RS BEVERAGE
Performance |
Timeline |
Xenia Hotels Resorts |
MOLSON RS BEVERAGE |
Xenia Hotels and MOLSON COORS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xenia Hotels and MOLSON COORS
The main advantage of trading using opposite Xenia Hotels and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xenia Hotels 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's long position.Xenia Hotels vs. IMAGIN MEDICAL INC | Xenia Hotels vs. VIVA WINE GROUP | Xenia Hotels vs. ITALIAN WINE BRANDS | Xenia Hotels vs. Peijia Medical Limited |
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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.
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