Correlation Between Molson Coors and Stardust Power
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Stardust Power 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 Stardust Power 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 Stardust Power, you can compare the effects of market volatilities on Molson Coors and Stardust Power 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 Stardust Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Stardust Power.
Diversification Opportunities for Molson Coors and Stardust Power
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molson and Stardust is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Stardust Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stardust Power 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 Stardust Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stardust Power has no effect on the direction of Molson Coors i.e., Molson Coors and Stardust Power go up and down completely randomly.
Pair Corralation between Molson Coors and Stardust Power
Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 0.22 times more return on investment than Stardust Power. However, Molson Coors Brewing is 4.45 times less risky than Stardust Power. It trades about 0.11 of its potential returns per unit of risk. Stardust Power is currently generating about -0.02 per unit of risk. If you would invest 5,690 in Molson Coors Brewing on September 2, 2024 and sell it today you would earn a total of 516.00 from holding Molson Coors Brewing or generate 9.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Brewing vs. Stardust Power
Performance |
| Timeline |
| Molson Coors Brewing |
| Stardust Power |
Molson Coors and Stardust Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Stardust Power
The main advantage of trading using opposite Molson Coors and Stardust Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Stardust Power 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 Stardust Power will offset losses from the drop in Stardust Power'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 |
| Stardust Power vs. Four Seasons Education | Stardust Power vs. Relx PLC ADR | Stardust Power vs. PennantPark Floating Rate | Stardust Power vs. Cedar Realty Trust |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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