Correlation Between Molson Coors and Welcia Holdings
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Welcia Holdings 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 Welcia Holdings 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 Welcia Holdings Co, you can compare the effects of market volatilities on Molson Coors and Welcia Holdings 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 Welcia Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Welcia Holdings.
Diversification Opportunities for Molson Coors and Welcia Holdings
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Molson and Welcia is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Welcia Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Welcia Holdings 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 Welcia Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Welcia Holdings has no effect on the direction of Molson Coors i.e., Molson Coors and Welcia Holdings go up and down completely randomly.
Pair Corralation between Molson Coors and Welcia Holdings
If you would invest 4,943 in Molson Coors Brewing on September 14, 2024 and sell it today you would earn a total of 1,181 from holding Molson Coors Brewing or generate 23.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Molson Coors Brewing vs. Welcia Holdings Co
Performance |
| Timeline |
| Molson Coors Brewing |
| Welcia Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Molson Coors and Welcia Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Welcia Holdings
The main advantage of trading using opposite Molson Coors and Welcia Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Welcia Holdings 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 Welcia Holdings will offset losses from the drop in Welcia Holdings' long position.| Molson Coors vs. Fomento Economico Mexicano | Molson Coors vs. Carlsberg AS | Molson Coors vs. Compania Cervecerias Unidas | Molson Coors vs. Molson Coors Beverage |
| Welcia Holdings vs. Celsius Holdings | Welcia Holdings vs. Molson Coors Brewing | Welcia Holdings vs. LGI Homes | Welcia Holdings vs. ScanSource |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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