Correlation Between Molson Coors and Banco Santander
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Banco Santander 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 Banco Santander 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 Banco Santander SA, you can compare the effects of market volatilities on Molson Coors and Banco Santander 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 Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Banco Santander.
Diversification Opportunities for Molson Coors and Banco Santander
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Molson and Banco is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Banco Santander SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander SA 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 Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander SA has no effect on the direction of Molson Coors i.e., Molson Coors and Banco Santander go up and down completely randomly.
Pair Corralation between Molson Coors and Banco Santander
If you would invest 1,130 in Banco Santander SA on October 30, 2024 and sell it today you would earn a total of 58.00 from holding Banco Santander SA or generate 5.13% 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. Banco Santander SA
Performance |
| Timeline |
| Molson Coors Beverage |
| Banco Santander SA |
Molson Coors and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Banco Santander
The main advantage of trading using opposite Molson Coors and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Banco Santander 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 Banco Santander will offset losses from the drop in Banco Santander's long position.| Molson Coors vs. Taiwan Semiconductor Manufacturing | Molson Coors vs. Costco Wholesale | Molson Coors vs. Annaly Capital Management, | Molson Coors vs. Paycom Software |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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