Correlation Between Lamar Advertising and MOLSON COORS
Can any of the company-specific risk be diversified away by investing in both Lamar Advertising 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 Lamar Advertising and MOLSON COORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lamar Advertising and MOLSON RS BEVERAGE, you can compare the effects of market volatilities on Lamar Advertising 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 Lamar Advertising with a short position of MOLSON COORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lamar Advertising and MOLSON COORS.
Diversification Opportunities for Lamar Advertising and MOLSON COORS
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lamar and MOLSON is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Lamar Advertising 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 Lamar Advertising 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 Lamar Advertising 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 Lamar Advertising i.e., Lamar Advertising and MOLSON COORS go up and down completely randomly.
Pair Corralation between Lamar Advertising and MOLSON COORS
Assuming the 90 days trading horizon Lamar Advertising is expected to generate 0.73 times more return on investment than MOLSON COORS. However, Lamar Advertising is 1.37 times less risky than MOLSON COORS. It trades about 0.0 of its potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about -0.37 per unit of risk. If you would invest 11,800 in Lamar Advertising on October 22, 2024 and sell it today you would earn a total of 0.00 from holding Lamar Advertising or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lamar Advertising vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| Lamar Advertising |
| MOLSON RS BEVERAGE |
Lamar Advertising and MOLSON COORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lamar Advertising and MOLSON COORS
The main advantage of trading using opposite Lamar Advertising and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lamar Advertising 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.| Lamar Advertising vs. Caseys General Stores | Lamar Advertising vs. MARKET VECTR RETAIL | Lamar Advertising vs. National Retail Properties | Lamar Advertising vs. Stag Industrial |
| MOLSON COORS vs. CODERE ONLINE LUX | MOLSON COORS vs. ZhongAn Online P | MOLSON COORS vs. Lamar Advertising | MOLSON COORS vs. TELECOM ITALRISP ADR10 |
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 CEOs Directory module to screen CEOs from public companies around the world.
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