Correlation Between Molson Coors and Savaria
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Savaria 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 Savaria 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 Savaria, you can compare the effects of market volatilities on Molson Coors and Savaria 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 Savaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Savaria.
Diversification Opportunities for Molson Coors and Savaria
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Molson and Savaria is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Canada and Savaria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savaria 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 Savaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savaria has no effect on the direction of Molson Coors i.e., Molson Coors and Savaria go up and down completely randomly.
Pair Corralation between Molson Coors and Savaria
Assuming the 90 days trading horizon Molson Coors Canada is expected to generate 0.54 times more return on investment than Savaria. However, Molson Coors Canada is 1.84 times less risky than Savaria. It trades about 0.02 of its potential returns per unit of risk. Savaria is currently generating about -0.25 per unit of risk. If you would invest 8,430 in Molson Coors Canada on September 22, 2024 and sell it today you would earn a total of 16.00 from holding Molson Coors Canada or generate 0.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
Molson Coors Canada vs. Savaria
Performance |
| Timeline |
| Molson Coors Canada |
| Savaria |
Molson Coors and Savaria Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Savaria
The main advantage of trading using opposite Molson Coors and Savaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Savaria 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 Savaria will offset losses from the drop in Savaria's long position.| Molson Coors vs. Maple Leaf Foods | Molson Coors vs. Saputo Inc | Molson Coors vs. Quebecor | Molson Coors vs. Lassonde Industries |
| Savaria vs. Alphabet Inc CDR | Savaria vs. Microsoft Corp CDR | Savaria vs. Tesla Inc CDR | Savaria vs. INTEL CDR |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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