Correlation Between Life Time and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Life Time 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 Life Time and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Time Group and Molson Coors Brewing, you can compare the effects of market volatilities on Life Time 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 Life Time with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and Molson Coors.
Diversification Opportunities for Life Time and Molson Coors
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Life and Molson is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Life Time 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 Life Time 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 Life Time 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 Life Time i.e., Life Time and Molson Coors go up and down completely randomly.
Pair Corralation between Life Time and Molson Coors
Considering the 90-day investment horizon Life Time Group is expected to under-perform the Molson Coors. In addition to that, Life Time is 1.26 times more volatile than Molson Coors Brewing. It trades about -0.2 of its total potential returns per unit of risk. Molson Coors Brewing is currently generating about 0.09 per unit of volatility. If you would invest 6,007 in Molson Coors Brewing on September 12, 2024 and sell it today you would earn a total of 132.00 from holding Molson Coors Brewing or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Life Time Group vs. Molson Coors Brewing
Performance |
| Timeline |
| Life Time Group |
| Molson Coors Brewing |
Life Time and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and Molson Coors
The main advantage of trading using opposite Life Time and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time 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.| Life Time vs. Planet Fitness | Life Time vs. Bowlero Corp | Life Time vs. JAKKS Pacific | Life Time vs. Acushnet Holdings Corp |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |