Correlation Between Molson Coors and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both Molson Coors and JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES, you can compare the effects of market volatilities on Molson Coors and JIAHUA STORES 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 JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and JIAHUA STORES.
Diversification Opportunities for Molson Coors and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Molson and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES 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 JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of Molson Coors i.e., Molson Coors and JIAHUA STORES go up and down completely randomly.
Pair Corralation between Molson Coors and JIAHUA STORES
If you would invest 4,269 in Molson Coors Beverage on October 13, 2024 and sell it today you would earn a total of 1,071 from holding Molson Coors Beverage or generate 25.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Molson Coors Beverage vs. JIAHUA STORES
Performance |
| Timeline |
| Molson Coors Beverage |
| JIAHUA STORES |
Molson Coors and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and JIAHUA STORES
The main advantage of trading using opposite Molson Coors and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.The idea behind Molson Coors Beverage and JIAHUA STORES pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| JIAHUA STORES vs. Federal Agricultural Mortgage | JIAHUA STORES vs. Granite Construction | JIAHUA STORES vs. Sterling Construction | JIAHUA STORES 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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