Correlation Between Molson Coors and CNJ Capital
Can any of the company-specific risk be diversified away by investing in both Molson Coors and CNJ Capital 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 CNJ Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molson Coors Canada and CNJ Capital Investments, you can compare the effects of market volatilities on Molson Coors and CNJ Capital 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 CNJ Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and CNJ Capital.
Diversification Opportunities for Molson Coors and CNJ Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Molson and CNJ is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Canada and CNJ Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNJ Capital Investments 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 Canada are associated (or correlated) with CNJ Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNJ Capital Investments has no effect on the direction of Molson Coors i.e., Molson Coors and CNJ Capital go up and down completely randomly.
Pair Corralation between Molson Coors and CNJ Capital
If you would invest 7,570 in Molson Coors Canada on December 4, 2024 and sell it today you would earn a total of 1,280 from holding Molson Coors Canada or generate 16.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
Molson Coors Canada vs. CNJ Capital Investments
Performance |
| Timeline |
| Molson Coors Canada |
| CNJ Capital Investments |
Molson Coors and CNJ Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and CNJ Capital
The main advantage of trading using opposite Molson Coors and CNJ Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, CNJ Capital 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 CNJ Capital will offset losses from the drop in CNJ Capital's long position.| Molson Coors vs. Maple Leaf Foods | Molson Coors vs. Saputo Inc | Molson Coors vs. Quebecor | Molson Coors vs. Lassonde Industries |
| CNJ Capital vs. Maple Leaf Foods | CNJ Capital vs. High Liner Foods | CNJ Capital vs. Sun Peak Metals | CNJ Capital vs. Calibre Mining 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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