Correlation Between Medical Properties and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Medical Properties 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 Medical Properties and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust, and Molson Coors Beverage, you can compare the effects of market volatilities on Medical Properties 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 Medical Properties with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Molson Coors.
Diversification Opportunities for Medical Properties and Molson Coors
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Medical and Molson is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust, and Molson Coors Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Beverage and Medical Properties 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 Medical Properties Trust, 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 Beverage has no effect on the direction of Medical Properties i.e., Medical Properties and Molson Coors go up and down completely randomly.
Pair Corralation between Medical Properties and Molson Coors
Assuming the 90 days trading horizon Medical Properties Trust, is expected to under-perform the Molson Coors. In addition to that, Medical Properties is 2.63 times more volatile than Molson Coors Beverage. It trades about -0.17 of its total potential returns per unit of risk. Molson Coors Beverage is currently generating about 0.14 per unit of volatility. If you would invest 34,519 in Molson Coors Beverage on January 13, 2025 and sell it today you would earn a total of 971.00 from holding Molson Coors Beverage or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust, vs. Molson Coors Beverage
Performance |
| Timeline |
| Medical Properties Trust, |
| Molson Coors Beverage |
Medical Properties and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Molson Coors
The main advantage of trading using opposite Medical Properties and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties 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.| Medical Properties vs. Brpr Corporate Offices | Medical Properties vs. Patria Investments Limited | Medical Properties vs. Liberty Broadband | Medical Properties vs. Broadcom |
| Molson Coors vs. MAHLE Metal Leve | Molson Coors vs. Verizon Communications | Molson Coors vs. Metalfrio Solutions SA | Molson Coors vs. Ares Management |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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