Correlation Between Lundin Energy and MOLSON COORS
Can any of the company-specific risk be diversified away by investing in both Lundin Energy 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 Lundin Energy and MOLSON COORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lundin Energy AB and MOLSON RS BEVERAGE, you can compare the effects of market volatilities on Lundin Energy 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 Lundin Energy with a short position of MOLSON COORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lundin Energy and MOLSON COORS.
Diversification Opportunities for Lundin Energy and MOLSON COORS
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lundin and MOLSON is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Energy AB and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE and Lundin Energy 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 Lundin Energy AB 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 RS BEVERAGE has no effect on the direction of Lundin Energy i.e., Lundin Energy and MOLSON COORS go up and down completely randomly.
Pair Corralation between Lundin Energy and MOLSON COORS
Assuming the 90 days horizon Lundin Energy AB is expected to under-perform the MOLSON COORS. In addition to that, Lundin Energy is 1.51 times more volatile than MOLSON RS BEVERAGE. It trades about -0.07 of its total potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about 0.26 per unit of volatility. If you would invest 5,250 in MOLSON RS BEVERAGE on September 5, 2024 and sell it today you would earn a total of 550.00 from holding MOLSON RS BEVERAGE or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lundin Energy AB vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| Lundin Energy AB |
| MOLSON RS BEVERAGE |
Lundin Energy and MOLSON COORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lundin Energy and MOLSON COORS
The main advantage of trading using opposite Lundin Energy and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Energy 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's long position.| Lundin Energy vs. MOLSON RS BEVERAGE | Lundin Energy vs. Monster Beverage Corp | Lundin Energy vs. United Breweries Co | Lundin Energy vs. ALBIS LEASING AG |
| MOLSON COORS vs. Anheuser Busch InBev SANV | MOLSON COORS vs. China Resources Beer | MOLSON COORS vs. Royal Unibrew AS |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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