Correlation Between Martifer SGPS and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Martifer SGPS 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 Martifer SGPS and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martifer SGPS SA and Molson Coors Beverage, you can compare the effects of market volatilities on Martifer SGPS 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 Martifer SGPS with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martifer SGPS and Molson Coors.
Diversification Opportunities for Martifer SGPS and Molson Coors
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Martifer and Molson is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Martifer SGPS SA 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 Martifer SGPS 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 Martifer SGPS SA 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 Martifer SGPS i.e., Martifer SGPS and Molson Coors go up and down completely randomly.
Pair Corralation between Martifer SGPS and Molson Coors
Assuming the 90 days horizon Martifer SGPS SA is expected to generate 1.64 times more return on investment than Molson Coors. However, Martifer SGPS is 1.64 times more volatile than Molson Coors Beverage. It trades about 0.07 of its potential returns per unit of risk. Molson Coors Beverage is currently generating about 0.02 per unit of risk. If you would invest 124.00 in Martifer SGPS SA on September 14, 2024 and sell it today you would earn a total of 50.00 from holding Martifer SGPS SA or generate 40.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martifer SGPS SA vs. Molson Coors Beverage
Performance |
| Timeline |
| Martifer SGPS SA |
| Molson Coors Beverage |
Martifer SGPS and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martifer SGPS and Molson Coors
The main advantage of trading using opposite Martifer SGPS and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martifer SGPS 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.| Martifer SGPS vs. Commonwealth Bank of | Martifer SGPS vs. Penta Ocean Construction Co | Martifer SGPS vs. TITAN MACHINERY | Martifer SGPS vs. BANKINTER ADR 2007 |
| Molson Coors vs. MOLSON RS BEVERAGE | Molson Coors vs. MeVis Medical Solutions | Molson Coors vs. Tyson Foods | Molson Coors vs. Apollo Medical Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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