Correlation Between ZhongAn Online and Molson Coors
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online 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 ZhongAn Online and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and Molson Coors Beverage, you can compare the effects of market volatilities on ZhongAn Online 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 ZhongAn Online with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and Molson Coors.
Diversification Opportunities for ZhongAn Online and Molson Coors
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZhongAn and Molson is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P 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 ZhongAn Online 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 ZhongAn Online P 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 ZhongAn Online i.e., ZhongAn Online and Molson Coors go up and down completely randomly.
Pair Corralation between ZhongAn Online and Molson Coors
Assuming the 90 days trading horizon ZhongAn Online P is expected to generate 1.62 times more return on investment than Molson Coors. However, ZhongAn Online is 1.62 times more volatile than Molson Coors Beverage. It trades about -0.04 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 143.00 in ZhongAn Online P on October 30, 2024 and sell it today you would lose (3.00) from holding ZhongAn Online P or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZhongAn Online P vs. Molson Coors Beverage
Performance |
| Timeline |
| ZhongAn Online P |
| Molson Coors Beverage |
ZhongAn Online and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZhongAn Online and Molson Coors
The main advantage of trading using opposite ZhongAn Online and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online 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.| ZhongAn Online vs. Quaker Chemical | ZhongAn Online vs. SINGAPORE AIRLINES | ZhongAn Online vs. X FAB Silicon Foundries | ZhongAn Online vs. Siamgas And Petrochemicals |
| Molson Coors vs. KINGBOARD CHEMICAL | Molson Coors vs. Keck Seng Investments | Molson Coors vs. Silicon Motion Technology | Molson Coors vs. Gladstone Investment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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