Correlation Between Molson Coors and Qingdao Port
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Qingdao Port 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 Qingdao Port 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 Qingdao Port International, you can compare the effects of market volatilities on Molson Coors and Qingdao Port 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 Qingdao Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Qingdao Port.
Diversification Opportunities for Molson Coors and Qingdao Port
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Molson and Qingdao is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Qingdao Port International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Port Interna 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 Qingdao Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Port Interna has no effect on the direction of Molson Coors i.e., Molson Coors and Qingdao Port go up and down completely randomly.
Pair Corralation between Molson Coors and Qingdao Port
Assuming the 90 days trading horizon Molson Coors is expected to generate 1.71 times less return on investment than Qingdao Port. But when comparing it to its historical volatility, Molson Coors Beverage is 2.05 times less risky than Qingdao Port. It trades about 0.26 of its potential returns per unit of risk. Qingdao Port International is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 53.00 in Qingdao Port International on September 5, 2024 and sell it today you would earn a total of 12.00 from holding Qingdao Port International or generate 22.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Molson Coors Beverage vs. Qingdao Port International
Performance |
| Timeline |
| Molson Coors Beverage |
| Qingdao Port Interna |
Molson Coors and Qingdao Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Qingdao Port
The main advantage of trading using opposite Molson Coors and Qingdao Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Qingdao Port 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 Qingdao Port will offset losses from the drop in Qingdao Port's long position.| Molson Coors vs. WisdomTree Investments | Molson Coors vs. VIAPLAY GROUP AB | Molson Coors vs. HK Electric Investments | Molson Coors vs. SLR Investment Corp |
| Qingdao Port vs. QBE Insurance Group | Qingdao Port vs. Thai Beverage Public | Qingdao Port vs. Tsingtao Brewery | Qingdao Port vs. Molson Coors Beverage |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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