Correlation Between MOLSON COORS and CHINA EDUCATION
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and CHINA EDUCATION 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 CHINA EDUCATION 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 CHINA EDUCATION GROUP, you can compare the effects of market volatilities on MOLSON COORS and CHINA EDUCATION 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 CHINA EDUCATION. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and CHINA EDUCATION.
Diversification Opportunities for MOLSON COORS and CHINA EDUCATION
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between MOLSON and CHINA is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and CHINA EDUCATION GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA EDUCATION GROUP 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 CHINA EDUCATION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA EDUCATION GROUP has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and CHINA EDUCATION go up and down completely randomly.
Pair Corralation between MOLSON COORS and CHINA EDUCATION
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to generate 0.23 times more return on investment than CHINA EDUCATION. However, MOLSON RS BEVERAGE is 4.34 times less risky than CHINA EDUCATION. It trades about 0.46 of its potential returns per unit of risk. CHINA EDUCATION GROUP is currently generating about -0.25 per unit of risk. If you would invest 5,050 in MOLSON RS BEVERAGE on August 28, 2024 and sell it today you would earn a total of 550.00 from holding MOLSON RS BEVERAGE or generate 10.89% 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. CHINA EDUCATION GROUP
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| CHINA EDUCATION GROUP |
MOLSON COORS and CHINA EDUCATION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and CHINA EDUCATION
The main advantage of trading using opposite MOLSON COORS and CHINA EDUCATION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, CHINA EDUCATION 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 CHINA EDUCATION will offset losses from the drop in CHINA EDUCATION's long position.| MOLSON COORS vs. LEGACY IRON ORE | MOLSON COORS vs. CosmoSteel Holdings Limited | MOLSON COORS vs. United States Steel | MOLSON COORS vs. ALGOMA STEEL GROUP |
| CHINA EDUCATION vs. ECHO INVESTMENT ZY | CHINA EDUCATION vs. PennyMac Mortgage Investment | CHINA EDUCATION vs. QBE Insurance Group | CHINA EDUCATION vs. MGIC INVESTMENT |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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