Correlation Between MOLSON COORS and SGL Carbon

Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and SGL Carbon 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 SGL Carbon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MOLSON RS BEVERAGE and SGL Carbon SE, you can compare the effects of market volatilities on MOLSON COORS and SGL Carbon 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 SGL Carbon. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and SGL Carbon.

Diversification Opportunities for MOLSON COORS and SGL Carbon

0.0

Correlation Coefficient

MOLSON COORS  SGL Carbon

Pay attention - limited upside

The 3 months correlation between MOLSON and SGL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and SGL Carbon SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGL Carbon SE 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 RS BEVERAGE are associated (or correlated) with SGL Carbon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGL Carbon SE has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and SGL Carbon go up and down completely randomly.

Pair Corralation between MOLSON COORS and SGL Carbon

If you would invest  0.00  in SGL Carbon SE on February 20, 2024 and sell it today you would earn a total of  0.00  from holding SGL Carbon SE or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

MOLSON RS BEVERAGE  vs.  SGL Carbon SE

MOLSON RS BEVERAGE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MOLSON RS BEVERAGE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, MOLSON COORS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

SGL Carbon SE

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days SGL Carbon SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SGL Carbon is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MOLSON COORS and SGL Carbon

The main advantage of trading using opposite MOLSON COORS and SGL Carbon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOLSON COORS position performs unexpectedly, SGL Carbon 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 SGL Carbon will offset losses from the drop in SGL Carbon's long position.

The idea behind MOLSON RS BEVERAGE and SGL Carbon SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.