Correlation Between Galaxy Entertainment and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment 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 Galaxy Entertainment and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Entertainment Group and Molson Coors Brewing, you can compare the effects of market volatilities on Galaxy Entertainment 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 Galaxy Entertainment with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and Molson Coors.
Diversification Opportunities for Galaxy Entertainment and Molson Coors
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Galaxy and Molson is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group 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 Galaxy Entertainment 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 Galaxy Entertainment 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 Brewing has no effect on the direction of Galaxy Entertainment i.e., Galaxy Entertainment and Molson Coors go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and Molson Coors
Assuming the 90 days horizon Galaxy Entertainment Group is expected to under-perform the Molson Coors. But the pink sheet apears to be less risky and, when comparing its historical volatility, Galaxy Entertainment Group is 1.14 times less risky than Molson Coors. The pink sheet trades about -0.14 of its potential returns per unit of risk. The Molson Coors Brewing is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 5,610 in Molson Coors Brewing on August 25, 2024 and sell it today you would earn a total of 426.00 from holding Molson Coors Brewing or generate 7.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Galaxy Entertainment Group vs. Molson Coors Brewing
Performance |
| Timeline |
| Galaxy Entertainment |
| Molson Coors Brewing |
Galaxy Entertainment and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and Molson Coors
The main advantage of trading using opposite Galaxy Entertainment and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment 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.| Galaxy Entertainment vs. Molson Coors Brewing | Galaxy Entertainment vs. Constellation Brands Class | Galaxy Entertainment vs. Boston Beer | Galaxy Entertainment vs. Western Acquisition Ventures |
| Molson Coors vs. Budweiser Brewing | Molson Coors vs. Boston Beer | Molson Coors vs. Anheuser Busch InBev SANV | Molson Coors vs. Ambev SA ADR |
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 CEOs Directory module to screen CEOs from public companies around the world.
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