Correlation Between MOLSON COORS and SENECA FOODS-A
Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and SENECA FOODS-A 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 SENECA FOODS-A 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 SENECA FOODS A, you can compare the effects of market volatilities on MOLSON COORS and SENECA FOODS-A 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 SENECA FOODS-A. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and SENECA FOODS-A.
Diversification Opportunities for MOLSON COORS and SENECA FOODS-A
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MOLSON and SENECA is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and SENECA FOODS A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENECA FOODS A 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 SENECA FOODS-A. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENECA FOODS A has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and SENECA FOODS-A go up and down completely randomly.
Pair Corralation between MOLSON COORS and SENECA FOODS-A
Assuming the 90 days trading horizon MOLSON COORS is expected to generate 39.04 times less return on investment than SENECA FOODS-A. In addition to that, MOLSON COORS is 1.03 times more volatile than SENECA FOODS A. It trades about 0.0 of its total potential returns per unit of risk. SENECA FOODS A is currently generating about 0.08 per unit of volatility. If you would invest 4,820 in SENECA FOODS A on October 20, 2024 and sell it today you would earn a total of 2,180 from holding SENECA FOODS A or generate 45.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOLSON RS BEVERAGE vs. SENECA FOODS A
Performance |
| Timeline |
| MOLSON RS BEVERAGE |
| SENECA FOODS A |
MOLSON COORS and SENECA FOODS-A Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOLSON COORS and SENECA FOODS-A
The main advantage of trading using opposite MOLSON COORS and SENECA FOODS-A positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, SENECA FOODS-A 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 SENECA FOODS-A will offset losses from the drop in SENECA FOODS-A's long position.| MOLSON COORS vs. UNITED UTILITIES GR | MOLSON COORS vs. PNC Financial Services | MOLSON COORS vs. CDN IMPERIAL BANK | MOLSON COORS vs. Chesapeake Utilities |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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