Correlation Between Zijin Mining and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Zijin Mining 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 Zijin Mining and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zijin Mining Group and Molson Coors Beverage, you can compare the effects of market volatilities on Zijin Mining 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 Zijin Mining with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zijin Mining and Molson Coors.
Diversification Opportunities for Zijin Mining and Molson Coors
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zijin and Molson is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zijin Mining Group 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 Zijin Mining 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 Zijin Mining Group 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 Zijin Mining i.e., Zijin Mining and Molson Coors go up and down completely randomly.
Pair Corralation between Zijin Mining and Molson Coors
Assuming the 90 days horizon Zijin Mining Group is expected to under-perform the Molson Coors. In addition to that, Zijin Mining is 1.5 times more volatile than Molson Coors Beverage. It trades about -0.11 of its total potential returns per unit of risk. Molson Coors Beverage is currently generating about 0.2 per unit of volatility. If you would invest 5,160 in Molson Coors Beverage on August 24, 2024 and sell it today you would earn a total of 574.00 from holding Molson Coors Beverage or generate 11.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zijin Mining Group vs. Molson Coors Beverage
Performance |
| Timeline |
| Zijin Mining Group |
| Molson Coors Beverage |
Zijin Mining and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zijin Mining and Molson Coors
The main advantage of trading using opposite Zijin Mining and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zijin Mining 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.| Zijin Mining vs. BHP Group Limited | Zijin Mining vs. Superior Plus Corp | Zijin Mining vs. NMI Holdings | Zijin Mining vs. Origin Agritech |
| Molson Coors vs. Anheuser Busch InBev SANV | Molson Coors vs. Lyxor 1 | Molson Coors vs. Xtrackers LevDAX | Molson Coors vs. Xtrackers ShortDAX |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance |