Correlation Between MOLSON COORS and SMA Solar
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and SMA Solar 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 SMA Solar 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 SMA Solar Technology, you can compare the effects of market volatilities on MOLSON COORS and SMA Solar 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 SMA Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and SMA Solar.
Diversification Opportunities for MOLSON COORS and SMA Solar
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MOLSON and SMA is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and SMA Solar Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMA Solar Technology 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 SMA Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMA Solar Technology has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and SMA Solar go up and down completely randomly.
Pair Corralation between MOLSON COORS and SMA Solar
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the SMA Solar. But the stock apears to be less risky and, when comparing its historical volatility, MOLSON RS BEVERAGE is 3.84 times less risky than SMA Solar. The stock trades about -0.25 of its potential returns per unit of risk. The SMA Solar Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,434 in SMA Solar Technology on October 14, 2024 and sell it today you would earn a total of 58.00 from holding SMA Solar Technology or generate 4.04% 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. SMA Solar Technology
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| SMA Solar Technology |
MOLSON COORS and SMA Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and SMA Solar
The main advantage of trading using opposite MOLSON COORS and SMA Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, SMA Solar 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 SMA Solar will offset losses from the drop in SMA Solar's long position.| MOLSON COORS vs. Treasury Wine Estates | MOLSON COORS vs. JAPAN TOBACCO UNSPADR12 | MOLSON COORS vs. Forsys Metals Corp | MOLSON COORS vs. MOVIE GAMES SA |
| SMA Solar vs. MOLSON RS BEVERAGE | SMA Solar vs. HOCHSCHILD MINING | SMA Solar vs. THAI BEVERAGE | SMA Solar vs. The Boston Beer |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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