Correlation Between MOLSON COORS and NH Foods
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and NH Foods 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 NH Foods 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 NH Foods, you can compare the effects of market volatilities on MOLSON COORS and NH Foods 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 NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and NH Foods.
Diversification Opportunities for MOLSON COORS and NH Foods
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MOLSON and NI6 is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and NH Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods 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 NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and NH Foods go up and down completely randomly.
Pair Corralation between MOLSON COORS and NH Foods
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the NH Foods. In addition to that, MOLSON COORS is 1.81 times more volatile than NH Foods. It trades about -0.01 of its total potential returns per unit of risk. NH Foods is currently generating about 0.02 per unit of volatility. If you would invest 2,500 in NH Foods on November 7, 2024 and sell it today you would earn a total of 240.00 from holding NH Foods or generate 9.6% 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. NH Foods
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| NH Foods |
MOLSON COORS and NH Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and NH Foods
The main advantage of trading using opposite MOLSON COORS and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.| MOLSON COORS vs. Townsquare Media | MOLSON COORS vs. UNITED RENTALS | MOLSON COORS vs. Prosiebensat 1 Media | MOLSON COORS vs. Live Nation Entertainment |
| NH Foods vs. T Mobile | NH Foods vs. Air Lease | NH Foods vs. ecotel communication ag | NH Foods vs. MAVEN WIRELESS SWEDEN |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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