Correlation Between Heineken Holding and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Heineken Holding 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 Heineken Holding and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heineken Holding NV and Molson Coors Brewing, you can compare the effects of market volatilities on Heineken Holding 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 Heineken Holding with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heineken Holding and Molson Coors.
Diversification Opportunities for Heineken Holding and Molson Coors
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Heineken and Molson is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Heineken Holding NV 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 Heineken Holding 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 Heineken Holding NV 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 Heineken Holding i.e., Heineken Holding and Molson Coors go up and down completely randomly.
Pair Corralation between Heineken Holding and Molson Coors
Assuming the 90 days horizon Heineken Holding NV is expected to under-perform the Molson Coors. But the otc stock apears to be less risky and, when comparing its historical volatility, Heineken Holding NV is 1.15 times less risky than Molson Coors. The otc stock trades about -0.2 of its potential returns per unit of risk. The Molson Coors Brewing is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,302 in Molson Coors Brewing on August 28, 2024 and sell it today you would earn a total of 765.00 from holding Molson Coors Brewing or generate 14.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heineken Holding NV vs. Molson Coors Brewing
Performance |
| Timeline |
| Heineken Holding |
| Molson Coors Brewing |
Heineken Holding and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heineken Holding and Molson Coors
The main advantage of trading using opposite Heineken Holding and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heineken Holding 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.| Heineken Holding vs. Barfresh Food Group | Heineken Holding vs. Fbec Worldwide | Heineken Holding vs. Flow Beverage Corp | Heineken Holding vs. Eq Energy Drink |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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