Correlation Between MOLSON COORS and Corsair Gaming
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and Corsair Gaming 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 Corsair Gaming 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 Corsair Gaming, you can compare the effects of market volatilities on MOLSON COORS and Corsair Gaming 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 Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and Corsair Gaming.
Diversification Opportunities for MOLSON COORS and Corsair Gaming
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MOLSON and Corsair is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming 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 Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and Corsair Gaming go up and down completely randomly.
Pair Corralation between MOLSON COORS and Corsair Gaming
Assuming the 90 days trading horizon MOLSON COORS is expected to generate 1.79 times less return on investment than Corsair Gaming. But when comparing it to its historical volatility, MOLSON RS BEVERAGE is 5.87 times less risky than Corsair Gaming. It trades about 0.41 of its potential returns per unit of risk. Corsair Gaming is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 605.00 in Corsair Gaming on September 1, 2024 and sell it today you would earn a total of 84.00 from holding Corsair Gaming or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. Corsair Gaming
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| Corsair Gaming |
MOLSON COORS and Corsair Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and Corsair Gaming
The main advantage of trading using opposite MOLSON COORS and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.| MOLSON COORS vs. G8 EDUCATION | MOLSON COORS vs. TAL Education Group | MOLSON COORS vs. IDP EDUCATION LTD | MOLSON COORS vs. Xinhua Winshare Publishing |
| Corsair Gaming vs. Superior Plus Corp | Corsair Gaming vs. NMI Holdings | Corsair Gaming vs. Origin Agritech | Corsair Gaming vs. SIVERS SEMICONDUCTORS AB |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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