Correlation Between AMERICAN and Molson Coors
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By analyzing existing cross correlation between AMERICAN EXPRESS PANY and Molson Coors Brewing, you can compare the effects of market volatilities on AMERICAN and Molson Coors 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 AMERICAN with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMERICAN and Molson Coors.
Diversification Opportunities for AMERICAN and Molson Coors
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMERICAN and Molson is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AMERICAN EXPRESS PANY and Molson Coors Brewing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Brewing and AMERICAN 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 AMERICAN EXPRESS PANY are associated (or correlated) with Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Brewing has no effect on the direction of AMERICAN i.e., AMERICAN and Molson Coors go up and down completely randomly.
Pair Corralation between AMERICAN and Molson Coors
Assuming the 90 days trading horizon AMERICAN is expected to generate 5.4 times less return on investment than Molson Coors. But when comparing it to its historical volatility, AMERICAN EXPRESS PANY is 6.33 times less risky than Molson Coors. It trades about 0.03 of its potential returns per unit of risk. Molson Coors Brewing is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,682 in Molson Coors Brewing on September 14, 2024 and sell it today you would earn a total of 482.00 from holding Molson Coors Brewing or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.51% |
| Values | Daily Returns |
AMERICAN EXPRESS PANY vs. Molson Coors Brewing
Performance |
| Timeline |
| AMERICAN EXPRESS PANY |
| Molson Coors Brewing |
AMERICAN and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMERICAN and Molson Coors
The main advantage of trading using opposite AMERICAN and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMERICAN position performs unexpectedly, Molson Coors 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 Molson Coors will offset losses from the drop in Molson Coors' long position.| AMERICAN vs. GameStop Corp | AMERICAN vs. Lifevantage | AMERICAN vs. Vestis | AMERICAN vs. Marfrig Global Foods |
| Molson Coors vs. Fomento Economico Mexicano | Molson Coors vs. Carlsberg AS | Molson Coors vs. Compania Cervecerias Unidas | Molson Coors vs. Molson Coors Beverage |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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