Correlation Between COMINTL BANK and Molson Coors
Can any of the company-specific risk be diversified away by investing in both COMINTL BANK 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 COMINTL BANK and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COMINTL BANK ADR1 and Molson Coors Beverage, you can compare the effects of market volatilities on COMINTL BANK 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 COMINTL BANK with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMINTL BANK and Molson Coors.
Diversification Opportunities for COMINTL BANK and Molson Coors
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between COMINTL and Molson is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding COMINTL BANK ADR1 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 COMINTL BANK 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 COMINTL BANK ADR1 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 COMINTL BANK i.e., COMINTL BANK and Molson Coors go up and down completely randomly.
Pair Corralation between COMINTL BANK and Molson Coors
Assuming the 90 days trading horizon COMINTL BANK ADR1 is expected to generate 1.85 times more return on investment than Molson Coors. However, COMINTL BANK is 1.85 times more volatile than Molson Coors Beverage. It trades about 0.09 of its potential returns per unit of risk. Molson Coors Beverage is currently generating about -0.04 per unit of risk. If you would invest 127.00 in COMINTL BANK ADR1 on September 26, 2024 and sell it today you would earn a total of 4.00 from holding COMINTL BANK ADR1 or generate 3.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COMINTL BANK ADR1 vs. Molson Coors Beverage
Performance |
| Timeline |
| COMINTL BANK ADR1 |
| Molson Coors Beverage |
COMINTL BANK and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COMINTL BANK and Molson Coors
The main advantage of trading using opposite COMINTL BANK and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMINTL BANK 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.| COMINTL BANK vs. BNP Paribas SA | COMINTL BANK vs. DNB BANK ASA | COMINTL BANK vs. Deutsche Bank Aktiengesellschaft | COMINTL BANK vs. Socit Gnrale Socit |
| Molson Coors vs. Liaoning Port CoLtd | Molson Coors vs. Talanx AG | Molson Coors vs. Broadridge Financial Solutions | Molson Coors vs. The Macerich |
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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