Correlation Between Carlsberg and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Carlsberg 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 Carlsberg and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlsberg AS and Molson Coors Brewing, you can compare the effects of market volatilities on Carlsberg 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 Carlsberg with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlsberg and Molson Coors.
Diversification Opportunities for Carlsberg and Molson Coors
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carlsberg and Molson is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Carlsberg AS and Molson Coors Brewing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Brewing and Carlsberg 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 Carlsberg AS 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 Brewing has no effect on the direction of Carlsberg i.e., Carlsberg and Molson Coors go up and down completely randomly.
Pair Corralation between Carlsberg and Molson Coors
Assuming the 90 days horizon Carlsberg AS is expected to under-perform the Molson Coors. In addition to that, Carlsberg is 1.14 times more volatile than Molson Coors Brewing. It trades about -0.21 of its total potential returns per unit of risk. Molson Coors Brewing is currently generating about 0.22 per unit of volatility. If you would invest 5,601 in Molson Coors Brewing on August 27, 2024 and sell it today you would earn a total of 435.00 from holding Molson Coors Brewing or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carlsberg AS vs. Molson Coors Brewing
Performance |
| Timeline |
| Carlsberg AS |
| Molson Coors Brewing |
Carlsberg and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlsberg and Molson Coors
The main advantage of trading using opposite Carlsberg and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlsberg 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.| Carlsberg vs. Barfresh Food Group | Carlsberg vs. Fbec Worldwide | Carlsberg vs. Flow Beverage Corp | Carlsberg vs. Eq Energy Drink |
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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.
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