Correlation Between Molson Coors and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Molson Coors and GRIFFIN MINING 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 GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on Molson Coors and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and GRIFFIN MINING.
Diversification Opportunities for Molson Coors and GRIFFIN MINING
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Molson and GRIFFIN is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Molson Coors i.e., Molson Coors and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Molson Coors and GRIFFIN MINING
Assuming the 90 days trading horizon Molson Coors is expected to generate 2.94 times less return on investment than GRIFFIN MINING. But when comparing it to its historical volatility, Molson Coors Beverage is 1.41 times less risky than GRIFFIN MINING. It trades about 0.05 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 81.00 in GRIFFIN MINING LTD on August 24, 2024 and sell it today you would earn a total of 91.00 from holding GRIFFIN MINING LTD or generate 112.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Beverage vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Molson Coors Beverage |
| GRIFFIN MINING LTD |
Molson Coors and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and GRIFFIN MINING
The main advantage of trading using opposite Molson Coors and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Molson Coors vs. Anheuser Busch InBev SANV | Molson Coors vs. Lyxor 1 | Molson Coors vs. Xtrackers LevDAX | Molson Coors vs. Xtrackers ShortDAX |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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