Correlation Between Molson Coors and SGS SA
Can any of the company-specific risk be diversified away by investing in both Molson Coors and SGS SA 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 SGS SA 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 SGS SA, you can compare the effects of market volatilities on Molson Coors and SGS SA 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 SGS SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and SGS SA.
Diversification Opportunities for Molson Coors and SGS SA
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Molson and SGS is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and SGS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGS SA 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 SGS SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGS SA has no effect on the direction of Molson Coors i.e., Molson Coors and SGS SA go up and down completely randomly.
Pair Corralation between Molson Coors and SGS SA
Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 1.22 times more return on investment than SGS SA. However, Molson Coors is 1.22 times more volatile than SGS SA. It trades about 0.29 of its potential returns per unit of risk. SGS SA is currently generating about -0.21 per unit of risk. If you would invest 5,571 in Molson Coors Brewing on September 5, 2024 and sell it today you would earn a total of 577.00 from holding Molson Coors Brewing or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Molson Coors Brewing vs. SGS SA
Performance |
| Timeline |
| Molson Coors Brewing |
| SGS SA |
Molson Coors and SGS SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and SGS SA
The main advantage of trading using opposite Molson Coors and SGS SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, SGS SA 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 SGS SA will offset losses from the drop in SGS SA'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 |
| SGS SA vs. CVW CleanTech | SGS SA vs. The Hanover Insurance | SGS SA vs. Pekin Life Insurance | SGS SA vs. Ecoloclean Industrs |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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