Correlation Between Molson Coors and Fossil
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Fossil 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 Fossil 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 Fossil Group, you can compare the effects of market volatilities on Molson Coors and Fossil 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 Fossil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Fossil.
Diversification Opportunities for Molson Coors and Fossil
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Molson and Fossil is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Fossil Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fossil Group 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 Fossil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fossil Group has no effect on the direction of Molson Coors i.e., Molson Coors and Fossil go up and down completely randomly.
Pair Corralation between Molson Coors and Fossil
Considering the 90-day investment horizon Molson Coors is expected to generate 1.31 times less return on investment than Fossil. But when comparing it to its historical volatility, Molson Coors Brewing is 3.48 times less risky than Fossil. It trades about 0.37 of its potential returns per unit of risk. Fossil Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 128.00 in Fossil Group on September 2, 2024 and sell it today you would earn a total of 18.00 from holding Fossil Group or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Brewing vs. Fossil Group
Performance |
| Timeline |
| Molson Coors Brewing |
| Fossil Group |
Molson Coors and Fossil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Fossil
The main advantage of trading using opposite Molson Coors and Fossil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Fossil 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 Fossil will offset losses from the drop in Fossil's 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 |
| Fossil vs. Lanvin Group Holdings | Fossil vs. Signet Jewelers | Fossil vs. Tapestry | Fossil vs. Capri Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |