Correlation Between MOLSON COORS and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and THAI BEVERAGE 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 THAI BEVERAGE 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 THAI BEVERAGE, you can compare the effects of market volatilities on MOLSON COORS and THAI BEVERAGE 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 THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and THAI BEVERAGE.
Diversification Opportunities for MOLSON COORS and THAI BEVERAGE
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between MOLSON and THAI is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE 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 THAI BEVERAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THAI BEVERAGE has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between MOLSON COORS and THAI BEVERAGE
Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to generate 0.42 times more return on investment than THAI BEVERAGE. However, MOLSON RS BEVERAGE is 2.4 times less risky than THAI BEVERAGE. It trades about 0.46 of its potential returns per unit of risk. THAI BEVERAGE is currently generating about 0.06 per unit of risk. If you would invest 5,050 in MOLSON RS BEVERAGE on August 27, 2024 and sell it today you would earn a total of 550.00 from holding MOLSON RS BEVERAGE or generate 10.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. THAI BEVERAGE
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| THAI BEVERAGE |
MOLSON COORS and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and THAI BEVERAGE
The main advantage of trading using opposite MOLSON COORS and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, THAI BEVERAGE 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 THAI BEVERAGE will offset losses from the drop in THAI BEVERAGE's long position.| MOLSON COORS vs. LEGACY IRON ORE | MOLSON COORS vs. CosmoSteel Holdings Limited | MOLSON COORS vs. United States Steel | MOLSON COORS vs. ALGOMA STEEL GROUP |
| THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Apple Inc | THAI BEVERAGE vs. Microsoft |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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