Correlation Between Molson Coors and Wallenius Wilhelmsen
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Wallenius Wilhelmsen 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 Wallenius Wilhelmsen 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 Wallenius Wilhelmsen ASA, you can compare the effects of market volatilities on Molson Coors and Wallenius Wilhelmsen 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 Wallenius Wilhelmsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Wallenius Wilhelmsen.
Diversification Opportunities for Molson Coors and Wallenius Wilhelmsen
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Molson and Wallenius is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Wallenius Wilhelmsen ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wallenius Wilhelmsen ASA 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 Wallenius Wilhelmsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wallenius Wilhelmsen ASA has no effect on the direction of Molson Coors i.e., Molson Coors and Wallenius Wilhelmsen go up and down completely randomly.
Pair Corralation between Molson Coors and Wallenius Wilhelmsen
Assuming the 90 days trading horizon Molson Coors Beverage is expected to generate 0.4 times more return on investment than Wallenius Wilhelmsen. However, Molson Coors Beverage is 2.47 times less risky than Wallenius Wilhelmsen. It trades about -0.06 of its potential returns per unit of risk. Wallenius Wilhelmsen ASA is currently generating about -0.1 per unit of risk. If you would invest 5,358 in Molson Coors Beverage on November 4, 2024 and sell it today you would lose (86.00) from holding Molson Coors Beverage or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Molson Coors Beverage vs. Wallenius Wilhelmsen ASA
Performance |
| Timeline |
| Molson Coors Beverage |
| Wallenius Wilhelmsen ASA |
Molson Coors and Wallenius Wilhelmsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Wallenius Wilhelmsen
The main advantage of trading using opposite Molson Coors and Wallenius Wilhelmsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Wallenius Wilhelmsen 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 Wallenius Wilhelmsen will offset losses from the drop in Wallenius Wilhelmsen's long position.| Molson Coors vs. Jacquet Metal Service | Molson Coors vs. UNITED UTILITIES GR | Molson Coors vs. Dairy Farm International | Molson Coors vs. TITAN MACHINERY |
| Wallenius Wilhelmsen vs. Safety Insurance Group | Wallenius Wilhelmsen vs. Scientific Games | Wallenius Wilhelmsen vs. DETALION GAMES SA | Wallenius Wilhelmsen vs. VIENNA INSURANCE GR |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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