Correlation Between MOLSON RS and Maple Leaf
Can any of the company-specific risk be diversified away by investing in both MOLSON RS and Maple Leaf 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 Maple Leaf 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 Maple Leaf Foods, you can compare the effects of market volatilities on MOLSON RS and Maple Leaf 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 Maple Leaf. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON RS and Maple Leaf.
Diversification Opportunities for MOLSON RS and Maple Leaf
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MOLSON and Maple is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and Maple Leaf Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maple Leaf Foods 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 Maple Leaf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maple Leaf Foods has no effect on the direction of MOLSON RS i.e., MOLSON RS and Maple Leaf go up and down completely randomly.
Pair Corralation between MOLSON RS and Maple Leaf
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the Maple Leaf. But the stock apears to be less risky and, when comparing its historical volatility, MOLSON RS BEVERAGE is 1.77 times less risky than Maple Leaf. The stock trades about -0.39 of its potential returns per unit of risk. The Maple Leaf Foods is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,330 in Maple Leaf Foods on October 25, 2024 and sell it today you would earn a total of 90.00 from holding Maple Leaf Foods or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. Maple Leaf Foods
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| Maple Leaf Foods |
MOLSON RS and Maple Leaf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON RS and Maple Leaf
The main advantage of trading using opposite MOLSON RS and Maple Leaf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON RS position performs unexpectedly, Maple Leaf 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 Maple Leaf will offset losses from the drop in Maple Leaf's long position.| MOLSON RS vs. Scottish Mortgage Investment | MOLSON RS vs. CDL INVESTMENT | MOLSON RS vs. Keck Seng Investments | MOLSON RS vs. Cars Inc |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |