Correlation Between KOOL2PLAY and MOLSON COORS
Can any of the company-specific risk be diversified away by investing in both KOOL2PLAY 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 KOOL2PLAY and MOLSON COORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOOL2PLAY SA ZY and MOLSON RS BEVERAGE, you can compare the effects of market volatilities on KOOL2PLAY 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 KOOL2PLAY with a short position of MOLSON COORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOOL2PLAY and MOLSON COORS.
Diversification Opportunities for KOOL2PLAY and MOLSON COORS
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KOOL2PLAY and MOLSON is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding KOOL2PLAY SA ZY 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 KOOL2PLAY 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 KOOL2PLAY SA ZY 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 KOOL2PLAY i.e., KOOL2PLAY and MOLSON COORS go up and down completely randomly.
Pair Corralation between KOOL2PLAY and MOLSON COORS
Assuming the 90 days horizon KOOL2PLAY is expected to generate 1.9 times less return on investment than MOLSON COORS. In addition to that, KOOL2PLAY is 7.52 times more volatile than MOLSON RS BEVERAGE. It trades about 0.03 of its total potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about 0.37 per unit of volatility. If you would invest 5,250 in MOLSON RS BEVERAGE on September 4, 2024 and sell it today you would earn a total of 300.00 from holding MOLSON RS BEVERAGE or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KOOL2PLAY SA ZY vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| KOOL2PLAY SA ZY |
| MOLSON RS BEVERAGE |
KOOL2PLAY and MOLSON COORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOOL2PLAY and MOLSON COORS
The main advantage of trading using opposite KOOL2PLAY and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOOL2PLAY 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.| KOOL2PLAY vs. Nintendo Co | KOOL2PLAY vs. Nintendo Co | KOOL2PLAY vs. Sea Limited | KOOL2PLAY vs. Take Two Interactive Software |
| MOLSON COORS vs. SPARTAN STORES | MOLSON COORS vs. Caseys General Stores | MOLSON COORS vs. KOOL2PLAY SA ZY | MOLSON COORS vs. Columbia Sportswear |
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 Stocks Directory module to find actively traded stocks across global markets.
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