Correlation Between MOLSON COORS and Strategic Investments
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and Strategic Investments 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 Strategic Investments 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 Strategic Investments AS, you can compare the effects of market volatilities on MOLSON COORS and Strategic Investments 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 Strategic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and Strategic Investments.
Diversification Opportunities for MOLSON COORS and Strategic Investments
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MOLSON and Strategic is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and Strategic Investments AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Investments 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 Strategic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Investments has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and Strategic Investments go up and down completely randomly.
Pair Corralation between MOLSON COORS and Strategic Investments
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the Strategic Investments. But the stock apears to be less risky and, when comparing its historical volatility, MOLSON RS BEVERAGE is 9.27 times less risky than Strategic Investments. The stock trades about -0.06 of its potential returns per unit of risk. The Strategic Investments AS is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Strategic Investments AS on October 12, 2024 and sell it today you would earn a total of 1.00 from holding Strategic Investments AS or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. Strategic Investments AS
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| Strategic Investments |
MOLSON COORS and Strategic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and Strategic Investments
The main advantage of trading using opposite MOLSON COORS and Strategic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, Strategic Investments 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 Strategic Investments will offset losses from the drop in Strategic Investments' long position.| MOLSON COORS vs. China Resources Beer | MOLSON COORS vs. Superior Plus Corp | MOLSON COORS vs. NMI Holdings | MOLSON COORS vs. SIVERS SEMICONDUCTORS AB |
| Strategic Investments vs. ADDUS HOMECARE | Strategic Investments vs. MOLSON RS BEVERAGE | Strategic Investments vs. CAIRN HOMES EO | Strategic Investments vs. CITY OFFICE REIT |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |