Correlation Between Molson Coors and Galaxy Entertainment
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Galaxy Entertainment 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 Galaxy Entertainment 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 Galaxy Entertainment Group, you can compare the effects of market volatilities on Molson Coors and Galaxy Entertainment 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 Galaxy Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Galaxy Entertainment.
Diversification Opportunities for Molson Coors and Galaxy Entertainment
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Molson and Galaxy is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Galaxy Entertainment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galaxy Entertainment 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 Galaxy Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galaxy Entertainment has no effect on the direction of Molson Coors i.e., Molson Coors and Galaxy Entertainment go up and down completely randomly.
Pair Corralation between Molson Coors and Galaxy Entertainment
Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 0.45 times more return on investment than Galaxy Entertainment. However, Molson Coors Brewing is 2.23 times less risky than Galaxy Entertainment. It trades about 0.04 of its potential returns per unit of risk. Galaxy Entertainment Group is currently generating about -0.02 per unit of risk. If you would invest 5,002 in Molson Coors Brewing on August 29, 2024 and sell it today you would earn a total of 1,139 from holding Molson Coors Brewing or generate 22.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.79% |
| Values | Daily Returns |
Molson Coors Brewing vs. Galaxy Entertainment Group
Performance |
| Timeline |
| Molson Coors Brewing |
| Galaxy Entertainment |
Molson Coors and Galaxy Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Galaxy Entertainment
The main advantage of trading using opposite Molson Coors and Galaxy Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Galaxy Entertainment 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 Galaxy Entertainment will offset losses from the drop in Galaxy Entertainment'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 |
| Galaxy Entertainment vs. Studio City International | Galaxy Entertainment vs. Monarch Casino Resort | Galaxy Entertainment vs. Playa Hotels Resorts | Galaxy Entertainment vs. Las Vegas Sands |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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