Correlation Between MOLSON COORS and CN DATANG
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and CN DATANG 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 CN DATANG 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 CN DATANG C, you can compare the effects of market volatilities on MOLSON COORS and CN DATANG 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 CN DATANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and CN DATANG.
Diversification Opportunities for MOLSON COORS and CN DATANG
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MOLSON and DT7 is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and CN DATANG C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN DATANG C 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 CN DATANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN DATANG C has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and CN DATANG go up and down completely randomly.
Pair Corralation between MOLSON COORS and CN DATANG
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the CN DATANG. But the stock apears to be less risky and, when comparing its historical volatility, MOLSON RS BEVERAGE is 1.3 times less risky than CN DATANG. The stock trades about -0.1 of its potential returns per unit of risk. The CN DATANG C is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 24.00 in CN DATANG C on October 11, 2024 and sell it today you would earn a total of 0.00 from holding CN DATANG C or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. CN DATANG C
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| CN DATANG C |
MOLSON COORS and CN DATANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and CN DATANG
The main advantage of trading using opposite MOLSON COORS and CN DATANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, CN DATANG 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 CN DATANG will offset losses from the drop in CN DATANG's 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 |
| CN DATANG vs. COMBA TELECOM SYST | CN DATANG vs. INDOFOOD AGRI RES | CN DATANG vs. TYSON FOODS A | CN DATANG vs. MOLSON RS BEVERAGE |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |