Correlation Between MOLSON COORS and Aya Gold
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and Aya Gold 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 Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOLSON RS BEVERAGE and Aya Gold Silver, you can compare the effects of market volatilities on MOLSON COORS and Aya Gold 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 Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and Aya Gold.
Diversification Opportunities for MOLSON COORS and Aya Gold
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOLSON and Aya is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver 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 RS BEVERAGE are associated (or correlated) with Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and Aya Gold go up and down completely randomly.
Pair Corralation between MOLSON COORS and Aya Gold
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to generate 0.48 times more return on investment than Aya Gold. However, MOLSON RS BEVERAGE is 2.09 times less risky than Aya Gold. It trades about -0.25 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.35 per unit of risk. If you would invest 5,750 in MOLSON RS BEVERAGE on October 13, 2024 and sell it today you would lose (300.00) from holding MOLSON RS BEVERAGE or give up 5.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. Aya Gold Silver
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| Aya Gold Silver |
MOLSON COORS and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and Aya Gold
The main advantage of trading using opposite MOLSON COORS and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, Aya Gold 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 Aya Gold will offset losses from the drop in Aya Gold's long position.| MOLSON COORS vs. AM EAGLE OUTFITTERS | MOLSON COORS vs. Urban Outfitters | MOLSON COORS vs. G III Apparel Group | MOLSON COORS vs. Samsung Electronics Co |
| Aya Gold vs. Tsingtao Brewery | Aya Gold vs. MOLSON RS BEVERAGE | Aya Gold vs. Nexstar Media Group | Aya Gold vs. CNVISION MEDIA |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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