Correlation Between SOLSTAD OFFSHORE and MOLSON COORS
Can any of the company-specific risk be diversified away by investing in both SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE and MOLSON COORS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOLSTAD OFFSHORE NK and MOLSON RS BEVERAGE, you can compare the effects of market volatilities on SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE with a short position of MOLSON COORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOLSTAD OFFSHORE and MOLSON COORS.
Diversification Opportunities for SOLSTAD OFFSHORE and MOLSON COORS
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between SOLSTAD and MOLSON is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding SOLSTAD OFFSHORE NK and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE and SOLSTAD OFFSHORE 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 SOLSTAD OFFSHORE NK 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 RS BEVERAGE has no effect on the direction of SOLSTAD OFFSHORE i.e., SOLSTAD OFFSHORE and MOLSON COORS go up and down completely randomly.
Pair Corralation between SOLSTAD OFFSHORE and MOLSON COORS
Assuming the 90 days horizon SOLSTAD OFFSHORE NK is expected to generate 4.88 times more return on investment than MOLSON COORS. However, SOLSTAD OFFSHORE is 4.88 times more volatile than MOLSON RS BEVERAGE. It trades about 0.21 of its potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about 0.41 per unit of risk. If you would invest 282.00 in SOLSTAD OFFSHORE NK on September 1, 2024 and sell it today you would earn a total of 68.00 from holding SOLSTAD OFFSHORE NK or generate 24.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOLSTAD OFFSHORE NK vs. MOLSON RS BEVERAGE
Performance |
| Timeline |
| SOLSTAD OFFSHORE |
| MOLSON RS BEVERAGE |
SOLSTAD OFFSHORE and MOLSON COORS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOLSTAD OFFSHORE and MOLSON COORS
The main advantage of trading using opposite SOLSTAD OFFSHORE and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOLSTAD OFFSHORE 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's long position.| SOLSTAD OFFSHORE vs. Clarkson PLC | SOLSTAD OFFSHORE vs. Wilh Wilhelmsen Holding | SOLSTAD OFFSHORE vs. Superior Plus Corp | SOLSTAD OFFSHORE vs. NMI Holdings |
| MOLSON COORS vs. G8 EDUCATION | MOLSON COORS vs. TAL Education Group | MOLSON COORS vs. IDP EDUCATION LTD | MOLSON COORS vs. Xinhua Winshare Publishing |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |