Correlation Between Molson Coors and EIDESVIK OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Molson Coors and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE NK, you can compare the effects of market volatilities on Molson Coors and EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and EIDESVIK OFFSHORE.
Diversification Opportunities for Molson Coors and EIDESVIK OFFSHORE
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Molson and EIDESVIK is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and EIDESVIK OFFSHORE NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIDESVIK OFFSHORE has no effect on the direction of Molson Coors i.e., Molson Coors and EIDESVIK OFFSHORE go up and down completely randomly.
Pair Corralation between Molson Coors and EIDESVIK OFFSHORE
Assuming the 90 days trading horizon Molson Coors Beverage is expected to generate 0.73 times more return on investment than EIDESVIK OFFSHORE. However, Molson Coors Beverage is 1.37 times less risky than EIDESVIK OFFSHORE. It trades about 0.12 of its potential returns per unit of risk. EIDESVIK OFFSHORE NK is currently generating about -0.04 per unit of risk. If you would invest 5,121 in Molson Coors Beverage on September 23, 2024 and sell it today you would earn a total of 497.00 from holding Molson Coors Beverage or generate 9.71% 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. EIDESVIK OFFSHORE NK
Performance |
| Timeline |
| Molson Coors Beverage |
| EIDESVIK OFFSHORE |
Molson Coors and EIDESVIK OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and EIDESVIK OFFSHORE
The main advantage of trading using opposite Molson Coors and EIDESVIK OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, EIDESVIK OFFSHORE 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 EIDESVIK OFFSHORE will offset losses from the drop in EIDESVIK OFFSHORE's long position.| Molson Coors vs. Webster Financial | Molson Coors vs. VIRG NATL BANKSH | Molson Coors vs. FLOW TRADERS LTD | Molson Coors vs. Chiba Bank |
| EIDESVIK OFFSHORE vs. AGF Management Limited | EIDESVIK OFFSHORE vs. SBI Insurance Group | EIDESVIK OFFSHORE vs. HANOVER INSURANCE | EIDESVIK OFFSHORE vs. Brockhaus Capital 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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