Correlation Between Aurora Investment and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Aurora Investment 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 Aurora Investment and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurora Investment Trust and Molson Coors Beverage, you can compare the effects of market volatilities on Aurora Investment 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 Aurora Investment with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurora Investment and Molson Coors.
Diversification Opportunities for Aurora Investment and Molson Coors
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aurora and Molson is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Investment Trust 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 Aurora Investment 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 Aurora Investment Trust 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 Aurora Investment i.e., Aurora Investment and Molson Coors go up and down completely randomly.
Pair Corralation between Aurora Investment and Molson Coors
Assuming the 90 days trading horizon Aurora Investment Trust is expected to under-perform the Molson Coors. But the stock apears to be less risky and, when comparing its historical volatility, Aurora Investment Trust is 1.51 times less risky than Molson Coors. The stock trades about -0.01 of its potential returns per unit of risk. The Molson Coors Beverage is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 6,047 in Molson Coors Beverage on September 14, 2024 and sell it today you would earn a total of 142.00 from holding Molson Coors Beverage or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.8% |
| Values | Daily Returns |
Aurora Investment Trust vs. Molson Coors Beverage
Performance |
| Timeline |
| Aurora Investment Trust |
| Molson Coors Beverage |
Aurora Investment and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurora Investment and Molson Coors
The main advantage of trading using opposite Aurora Investment and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Investment 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.| Aurora Investment vs. Catalyst Media Group | Aurora Investment vs. CATLIN GROUP | Aurora Investment vs. Tamburi Investment Partners | Aurora Investment vs. Magnora ASA |
| Molson Coors vs. Evolution Gaming Group | Molson Coors vs. Air Products Chemicals | Molson Coors vs. PureTech Health plc | Molson Coors vs. Universal Health Services |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |