Correlation Between MOLSON COORS and Ambea AB
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and Ambea AB 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 Ambea AB 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 Ambea AB, you can compare the effects of market volatilities on MOLSON COORS and Ambea AB 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 Ambea AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and Ambea AB.
Diversification Opportunities for MOLSON COORS and Ambea AB
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MOLSON and Ambea is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and Ambea AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambea AB 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 Ambea AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambea AB has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and Ambea AB go up and down completely randomly.
Pair Corralation between MOLSON COORS and Ambea AB
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the Ambea AB. But the stock apears to be less risky and, when comparing its historical volatility, MOLSON RS BEVERAGE is 1.84 times less risky than Ambea AB. The stock trades about -0.4 of its potential returns per unit of risk. The Ambea AB is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 832.00 in Ambea AB on October 24, 2024 and sell it today you would lose (32.00) from holding Ambea AB or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. Ambea AB
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| Ambea AB |
MOLSON COORS and Ambea AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and Ambea AB
The main advantage of trading using opposite MOLSON COORS and Ambea AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, Ambea AB 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 Ambea AB will offset losses from the drop in Ambea AB's long position.| MOLSON COORS vs. Playa Hotels Resorts | MOLSON COORS vs. Universal Display | MOLSON COORS vs. PLAYMATES TOYS | MOLSON COORS vs. PLAY2CHILL SA ZY |
| Ambea AB vs. VELA TECHNOLPLC LS 0001 | Ambea AB vs. AEGEAN AIRLINES | Ambea AB vs. Aegean Airlines SA | Ambea AB vs. PKSHA TECHNOLOGY INC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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