Correlation Between MOLSON COORS and RETAIL FOOD
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and RETAIL FOOD 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 RETAIL FOOD 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 RETAIL FOOD GROUP, you can compare the effects of market volatilities on MOLSON COORS and RETAIL FOOD 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 RETAIL FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and RETAIL FOOD.
Diversification Opportunities for MOLSON COORS and RETAIL FOOD
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MOLSON and RETAIL is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and RETAIL FOOD GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RETAIL FOOD 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 RETAIL FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RETAIL FOOD GROUP has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and RETAIL FOOD go up and down completely randomly.
Pair Corralation between MOLSON COORS and RETAIL FOOD
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to generate 0.44 times more return on investment than RETAIL FOOD. However, MOLSON RS BEVERAGE is 2.27 times less risky than RETAIL FOOD. It trades about -0.1 of its potential returns per unit of risk. RETAIL FOOD GROUP is currently generating about -0.24 per unit of risk. If you would invest 5,550 in MOLSON RS BEVERAGE on October 10, 2024 and sell it today you would lose (150.00) from holding MOLSON RS BEVERAGE or give up 2.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. RETAIL FOOD GROUP
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| RETAIL FOOD GROUP |
MOLSON COORS and RETAIL FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and RETAIL FOOD
The main advantage of trading using opposite MOLSON COORS and RETAIL FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, RETAIL FOOD 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 RETAIL FOOD will offset losses from the drop in RETAIL FOOD's long position.| MOLSON COORS vs. Zoom Video Communications | MOLSON COORS vs. Charter Communications | MOLSON COORS vs. Cal Maine Foods | MOLSON COORS vs. Performance Food Group |
| RETAIL FOOD vs. NTG Nordic Transport | RETAIL FOOD vs. FIREWEED METALS P | RETAIL FOOD vs. Columbia Sportswear | RETAIL FOOD vs. Jacquet Metal Service |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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