Correlation Between Ontex Group and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Ontex Group and Molson Coors 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 Ontex Group and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ontex Group NV and Molson Coors Beverage, you can compare the effects of market volatilities on Ontex Group and Molson Coors 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 Ontex Group with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ontex Group and Molson Coors.
Diversification Opportunities for Ontex Group and Molson Coors
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ontex and Molson is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ontex Group NV and Molson Coors Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Beverage and Ontex Group 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 Ontex Group NV are associated (or correlated) with Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Beverage has no effect on the direction of Ontex Group i.e., Ontex Group and Molson Coors go up and down completely randomly.
Pair Corralation between Ontex Group and Molson Coors
Assuming the 90 days horizon Ontex Group is expected to generate 3.51 times less return on investment than Molson Coors. But when comparing it to its historical volatility, Ontex Group NV is 1.95 times less risky than Molson Coors. It trades about 0.15 of its potential returns per unit of risk. Molson Coors Beverage is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 5,032 in Molson Coors Beverage on August 30, 2024 and sell it today you would earn a total of 748.00 from holding Molson Coors Beverage or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ontex Group NV vs. Molson Coors Beverage
Performance |
| Timeline |
| Ontex Group NV |
| Molson Coors Beverage |
Ontex Group and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ontex Group and Molson Coors
The main advantage of trading using opposite Ontex Group and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ontex Group position performs unexpectedly, Molson Coors 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 Molson Coors will offset losses from the drop in Molson Coors' long position.| Ontex Group vs. LOral SA | Ontex Group vs. Superior Plus Corp | Ontex Group vs. NMI Holdings | Ontex Group vs. Origin Agritech |
| Molson Coors vs. Anheuser Busch InBev SANV | Molson Coors vs. Air China Limited | Molson Coors vs. General Mills | Molson Coors vs. Verizon Communications |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |