Correlation Between Molson Coors and WT OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Molson Coors and WT 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 WT 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 WT OFFSHORE, you can compare the effects of market volatilities on Molson Coors and WT 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 WT OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and WT OFFSHORE.
Diversification Opportunities for Molson Coors and WT OFFSHORE
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molson and UWV is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and WT OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WT 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 WT OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WT OFFSHORE has no effect on the direction of Molson Coors i.e., Molson Coors and WT OFFSHORE go up and down completely randomly.
Pair Corralation between Molson Coors and WT OFFSHORE
Assuming the 90 days trading horizon Molson Coors Beverage is expected to under-perform the WT OFFSHORE. But the stock apears to be less risky and, when comparing its historical volatility, Molson Coors Beverage is 4.1 times less risky than WT OFFSHORE. The stock trades about -0.34 of its potential returns per unit of risk. The WT OFFSHORE is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 146.00 in WT OFFSHORE on October 24, 2024 and sell it today you would earn a total of 27.00 from holding WT OFFSHORE or generate 18.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Beverage vs. WT OFFSHORE
Performance |
| Timeline |
| Molson Coors Beverage |
| WT OFFSHORE |
Molson Coors and WT OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and WT OFFSHORE
The main advantage of trading using opposite Molson Coors and WT OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, WT 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 WT OFFSHORE will offset losses from the drop in WT OFFSHORE's long position.| Molson Coors vs. Kulmbacher Brauerei Aktien Gesellschaft | Molson Coors vs. Gateway Real Estate | Molson Coors vs. Wyndham Hotels Resorts | Molson Coors vs. MICRONIC MYDATA |
| WT OFFSHORE vs. Molson Coors Beverage | WT OFFSHORE vs. Lifeway Foods | WT OFFSHORE vs. AUSNUTRIA DAIRY | WT OFFSHORE vs. COFCO Joycome Foods |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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