Correlation Between Valneva SE and Molson Coors
Can any of the company-specific risk be diversified away by investing in both Valneva SE and Molson Coors 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 Valneva SE and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valneva SE ADR and Molson Coors Brewing, you can compare the effects of market volatilities on Valneva SE 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 Valneva SE with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Molson Coors.
Diversification Opportunities for Valneva SE and Molson Coors
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valneva and Molson is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR 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 Valneva SE 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 Valneva SE ADR 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 Valneva SE i.e., Valneva SE and Molson Coors go up and down completely randomly.
Pair Corralation between Valneva SE and Molson Coors
Given the investment horizon of 90 days Valneva SE ADR is expected to under-perform the Molson Coors. In addition to that, Valneva SE is 3.82 times more volatile than Molson Coors Brewing. It trades about -0.28 of its total potential returns per unit of risk. Molson Coors Brewing is currently generating about -0.19 per unit of volatility. If you would invest 6,143 in Molson Coors Brewing on September 19, 2024 and sell it today you would lose (218.00) from holding Molson Coors Brewing or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valneva SE ADR vs. Molson Coors Brewing
Performance |
| Timeline |
| Valneva SE ADR |
| Molson Coors Brewing |
Valneva SE and Molson Coors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valneva SE and Molson Coors
The main advantage of trading using opposite Valneva SE and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE 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.| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
| Molson Coors vs. Budweiser Brewing | Molson Coors vs. Boston Beer | Molson Coors vs. Anheuser Busch InBev SANV | Molson Coors vs. Ambev SA ADR |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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