Correlation Between MOLSON RS and General Mills
Can any of the company-specific risk be diversified away by investing in both MOLSON RS and General Mills 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 RS and General Mills 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 General Mills, you can compare the effects of market volatilities on MOLSON RS and General Mills 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 RS with a short position of General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON RS and General Mills.
Diversification Opportunities for MOLSON RS and General Mills
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOLSON and General is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills and MOLSON RS 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of MOLSON RS i.e., MOLSON RS and General Mills go up and down completely randomly.
Pair Corralation between MOLSON RS and General Mills
Assuming the 90 days trading horizon MOLSON RS is expected to generate 1.3 times less return on investment than General Mills. In addition to that, MOLSON RS is 1.1 times more volatile than General Mills. It trades about 0.06 of its total potential returns per unit of risk. General Mills is currently generating about 0.09 per unit of volatility. If you would invest 6,147 in General Mills on September 14, 2024 and sell it today you would earn a total of 143.00 from holding General Mills or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. General Mills
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| General Mills |
MOLSON RS and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON RS and General Mills
The main advantage of trading using opposite MOLSON RS and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON RS position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| MOLSON RS vs. Superior Plus Corp | MOLSON RS vs. SIVERS SEMICONDUCTORS AB | MOLSON RS vs. NorAm Drilling AS | MOLSON RS vs. Norsk Hydro ASA |
| General Mills vs. PKSHA TECHNOLOGY INC | General Mills vs. MOLSON RS BEVERAGE | General Mills vs. National Beverage Corp | General Mills vs. Algonquin Power Utilities |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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