Correlation Between MOLSON COORS and PT Bank
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and PT Bank 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 PT Bank 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 PT Bank Central, you can compare the effects of market volatilities on MOLSON COORS and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and PT Bank.
Diversification Opportunities for MOLSON COORS and PT Bank
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between MOLSON and BZG2 is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and PT Bank Central in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Central 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Central has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and PT Bank go up and down completely randomly.
Pair Corralation between MOLSON COORS and PT Bank
Assuming the 90 days trading horizon MOLSON COORS is expected to generate 4.44 times less return on investment than PT Bank. But when comparing it to its historical volatility, MOLSON RS BEVERAGE is 2.13 times less risky than PT Bank. It trades about 0.02 of its potential returns per unit of risk. PT Bank Central is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 53.00 in PT Bank Central on November 4, 2024 and sell it today you would earn a total of 4.00 from holding PT Bank Central or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. PT Bank Central
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| PT Bank Central |
MOLSON COORS and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and PT Bank
The main advantage of trading using opposite MOLSON COORS and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| MOLSON COORS vs. GBS Software AG | MOLSON COORS vs. De Grey Mining | MOLSON COORS vs. East Africa Metals | MOLSON COORS vs. Perseus Mining Limited |
| PT Bank vs. Air Lease | PT Bank vs. Zoom Video Communications | PT Bank vs. FUYO GENERAL LEASE | PT Bank vs. Sixt Leasing SE |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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