Correlation Between Molson Coors and NEWFIELD
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By analyzing existing cross correlation between Molson Coors Brewing and NEWFIELD EXPL 5375, you can compare the effects of market volatilities on Molson Coors and NEWFIELD 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 NEWFIELD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and NEWFIELD.
Diversification Opportunities for Molson Coors and NEWFIELD
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Molson and NEWFIELD is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and NEWFIELD EXPL 5375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWFIELD EXPL 5375 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 NEWFIELD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWFIELD EXPL 5375 has no effect on the direction of Molson Coors i.e., Molson Coors and NEWFIELD go up and down completely randomly.
Pair Corralation between Molson Coors and NEWFIELD
Considering the 90-day investment horizon Molson Coors Brewing is expected to under-perform the NEWFIELD. In addition to that, Molson Coors is 1.55 times more volatile than NEWFIELD EXPL 5375. It trades about -0.23 of its total potential returns per unit of risk. NEWFIELD EXPL 5375 is currently generating about -0.12 per unit of volatility. If you would invest 10,019 in NEWFIELD EXPL 5375 on September 14, 2024 and sell it today you would lose (130.00) from holding NEWFIELD EXPL 5375 or give up 1.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Molson Coors Brewing vs. NEWFIELD EXPL 5375
Performance |
| Timeline |
| Molson Coors Brewing |
| NEWFIELD EXPL 5375 |
Molson Coors and NEWFIELD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and NEWFIELD
The main advantage of trading using opposite Molson Coors and NEWFIELD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, NEWFIELD 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 NEWFIELD will offset losses from the drop in NEWFIELD's long position.| Molson Coors vs. Fomento Economico Mexicano | Molson Coors vs. Boston Beer | Molson Coors vs. Carlsberg AS | Molson Coors vs. Compania Cervecerias Unidas |
| NEWFIELD vs. Diageo PLC ADR | NEWFIELD vs. Constellation Brands Class | NEWFIELD vs. Small Cap Premium | NEWFIELD vs. Molson Coors Brewing |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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