Correlation Between Molson Coors and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Celsius Holdings 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 Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molson Coors Brewing and Celsius Holdings, you can compare the effects of market volatilities on Molson Coors and Celsius Holdings 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 Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Celsius Holdings.
Diversification Opportunities for Molson Coors and Celsius Holdings
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Molson and Celsius is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings 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 Coors Brewing are associated (or correlated) with Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Molson Coors i.e., Molson Coors and Celsius Holdings go up and down completely randomly.
Pair Corralation between Molson Coors and Celsius Holdings
Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 0.4 times more return on investment than Celsius Holdings. However, Molson Coors Brewing is 2.48 times less risky than Celsius Holdings. It trades about 0.04 of its potential returns per unit of risk. Celsius Holdings is currently generating about 0.0 per unit of risk. If you would invest 4,997 in Molson Coors Brewing on September 3, 2024 and sell it today you would earn a total of 1,209 from holding Molson Coors Brewing or generate 24.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Brewing vs. Celsius Holdings
Performance |
| Timeline |
| Molson Coors Brewing |
| Celsius Holdings |
Molson Coors and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Celsius Holdings
The main advantage of trading using opposite Molson Coors and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.| Molson Coors vs. Budweiser Brewing | Molson Coors vs. Boston Beer | Molson Coors vs. Anheuser Busch InBev SANV | Molson Coors vs. Ambev SA ADR |
| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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