Correlation Between Molson Coors and Regions Financial
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Regions Financial 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 Regions Financial 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 Regions Financial, you can compare the effects of market volatilities on Molson Coors and Regions Financial 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 Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Regions Financial.
Diversification Opportunities for Molson Coors and Regions Financial
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Molson and Regions is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Regions Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial 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 Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial has no effect on the direction of Molson Coors i.e., Molson Coors and Regions Financial go up and down completely randomly.
Pair Corralation between Molson Coors and Regions Financial
Assuming the 90 days trading horizon Molson Coors Beverage is expected to generate 0.6 times more return on investment than Regions Financial. However, Molson Coors Beverage is 1.68 times less risky than Regions Financial. It trades about -0.04 of its potential returns per unit of risk. Regions Financial is currently generating about -0.36 per unit of risk. If you would invest 5,716 in Molson Coors Beverage on September 26, 2024 and sell it today you would lose (44.00) from holding Molson Coors Beverage or give up 0.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Beverage vs. Regions Financial
Performance |
| Timeline |
| Molson Coors Beverage |
| Regions Financial |
Molson Coors and Regions Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Regions Financial
The main advantage of trading using opposite Molson Coors and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Regions Financial 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 Regions Financial will offset losses from the drop in Regions Financial's long position.| Molson Coors vs. Liaoning Port CoLtd | Molson Coors vs. Talanx AG | Molson Coors vs. Broadridge Financial Solutions | Molson Coors vs. The Macerich |
| Regions Financial vs. The PNC Financial | Regions Financial vs. MT Bank Corp | Regions Financial vs. Citizens Financial Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |