Correlation Between Molson Coors and Life Time
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Life Time 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 Life Time 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 Life Time Group, you can compare the effects of market volatilities on Molson Coors and Life Time 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 Life Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Life Time.
Diversification Opportunities for Molson Coors and Life Time
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Molson and Life is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Life Time Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Time 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 Life Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Time Group has no effect on the direction of Molson Coors i.e., Molson Coors and Life Time go up and down completely randomly.
Pair Corralation between Molson Coors and Life Time
Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 0.79 times more return on investment than Life Time. However, Molson Coors Brewing is 1.26 times less risky than Life Time. It trades about 0.09 of its potential returns per unit of risk. Life Time Group is currently generating about -0.2 per unit of risk. If you would invest 6,007 in Molson Coors Brewing on September 12, 2024 and sell it today you would earn a total of 132.00 from holding Molson Coors Brewing or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Brewing vs. Life Time Group
Performance |
| Timeline |
| Molson Coors Brewing |
| Life Time Group |
Molson Coors and Life Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Life Time
The main advantage of trading using opposite Molson Coors and Life Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Life Time 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 Life Time will offset losses from the drop in Life Time'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 |
| Life Time vs. Planet Fitness | Life Time vs. Bowlero Corp | Life Time vs. JAKKS Pacific | Life Time vs. Acushnet Holdings Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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