Correlation Between Molson Coors and CVS Health
Can any of the company-specific risk be diversified away by investing in both Molson Coors and CVS Health 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 Molson Coors and CVS Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molson Coors Beverage and CVS Health, you can compare the effects of market volatilities on Molson Coors and CVS Health 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 Molson Coors with a short position of CVS Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and CVS Health.
Diversification Opportunities for Molson Coors and CVS Health
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Molson and CVS is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and CVS Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVS Health and Molson Coors 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 Molson Coors Beverage are associated (or correlated) with CVS Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVS Health has no effect on the direction of Molson Coors i.e., Molson Coors and CVS Health go up and down completely randomly.
Pair Corralation between Molson Coors and CVS Health
If you would invest 2,718 in CVS Health on October 21, 2024 and sell it today you would earn a total of 456.00 from holding CVS Health or generate 16.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Beverage vs. CVS Health
Performance |
| Timeline |
| Molson Coors Beverage |
| CVS Health |
Molson Coors and CVS Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and CVS Health
The main advantage of trading using opposite Molson Coors and CVS Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, CVS Health 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 CVS Health will offset losses from the drop in CVS Health's long position.| Molson Coors vs. Charter Communications | Molson Coors vs. DXC Technology | Molson Coors vs. TechnipFMC plc | Molson Coors vs. Paycom Software |
| CVS Health vs. Ameriprise Financial | CVS Health vs. The Hartford Financial | CVS Health vs. salesforce inc | CVS Health vs. Extra Space Storage |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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