Correlation Between Shunfeng International and MOLSON RS
Can any of the company-specific risk be diversified away by investing in both Shunfeng International and MOLSON RS 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 Shunfeng International and MOLSON RS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shunfeng International Clean and MOLSON RS BEVERAGE, you can compare the effects of market volatilities on Shunfeng International and MOLSON RS 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 Shunfeng International with a short position of MOLSON RS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shunfeng International and MOLSON RS.
Diversification Opportunities for Shunfeng International and MOLSON RS
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shunfeng and MOLSON is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Shunfeng International Clean 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 Shunfeng International 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 Shunfeng International Clean are associated (or correlated) with MOLSON RS. 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 Shunfeng International i.e., Shunfeng International and MOLSON RS go up and down completely randomly.
Pair Corralation between Shunfeng International and MOLSON RS
Assuming the 90 days horizon Shunfeng International Clean is expected to generate 26.13 times more return on investment than MOLSON RS. However, Shunfeng International is 26.13 times more volatile than MOLSON RS BEVERAGE. It trades about 0.1 of its potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about 0.01 per unit of risk. If you would invest 0.10 in Shunfeng International Clean on September 14, 2024 and sell it today you would earn a total of 0.30 from holding Shunfeng International Clean or generate 300.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shunfeng International Clean vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| Shunfeng International |
| MOLSON RS BEVERAGE |
Shunfeng International and MOLSON RS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shunfeng International and MOLSON RS
The main advantage of trading using opposite Shunfeng International and MOLSON RS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shunfeng International position performs unexpectedly, MOLSON RS 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 RS will offset losses from the drop in MOLSON RS's long position.| Shunfeng International vs. MOLSON RS BEVERAGE | Shunfeng International vs. Fevertree Drinks PLC | Shunfeng International vs. ScanSource | Shunfeng International vs. Safety Insurance Group |
| MOLSON RS vs. Superior Plus Corp | MOLSON RS vs. SIVERS SEMICONDUCTORS AB | MOLSON RS vs. NorAm Drilling AS | MOLSON RS vs. Norsk Hydro ASA |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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