Correlation Between First Ship and Molson Coors
Can any of the company-specific risk be diversified away by investing in both First Ship 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 First Ship and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and Molson Coors Brewing, you can compare the effects of market volatilities on First Ship 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 First Ship with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and Molson Coors.
Diversification Opportunities for First Ship and Molson Coors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Molson is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease 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 First Ship 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 First Ship Lease 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 First Ship i.e., First Ship and Molson Coors go up and down completely randomly.
Pair Corralation between First Ship and Molson Coors
If you would invest 5,164 in Molson Coors Brewing on September 3, 2024 and sell it today you would earn a total of 1,042 from holding Molson Coors Brewing or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
First Ship Lease vs. Molson Coors Brewing
Performance |
| Timeline |
| First Ship Lease |
| Molson Coors Brewing |
First Ship and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and Molson Coors
The main advantage of trading using opposite First Ship and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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.| First Ship vs. Broadstone Net Lease | First Ship vs. Global Ship Lease | First Ship vs. Flex | First Ship vs. Emerson Radio |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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