Correlation Between Molson Coors and Activision Blizzard
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Activision Blizzard 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 Activision Blizzard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molson Coors Brewing and Activision Blizzard, you can compare the effects of market volatilities on Molson Coors and Activision Blizzard 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 Activision Blizzard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Activision Blizzard.
Diversification Opportunities for Molson Coors and Activision Blizzard
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Molson and Activision is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Activision Blizzard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Activision Blizzard 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 Brewing are associated (or correlated) with Activision Blizzard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Activision Blizzard has no effect on the direction of Molson Coors i.e., Molson Coors and Activision Blizzard go up and down completely randomly.
Pair Corralation between Molson Coors and Activision Blizzard
If you would invest 6,245 in Molson Coors Brewing on December 30, 2023 and sell it today you would earn a total of 480.00 from holding Molson Coors Brewing or generate 7.69% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 4.55% |
Values | Daily Returns |
Molson Coors Brewing vs. Activision Blizzard
Performance |
Timeline |
Molson Coors Brewing |
Activision Blizzard |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Molson Coors and Activision Blizzard Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Molson Coors and Activision Blizzard
The main advantage of trading using opposite Molson Coors and Activision Blizzard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Activision Blizzard 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 Activision Blizzard will offset losses from the drop in Activision Blizzard's long position.Molson Coors vs. Fomento Economico Mexicano | Molson Coors vs. Fresh Grapes LLC | Molson Coors vs. Eastside Distilling | Molson Coors vs. Duckhorn Portfolio |
Activision Blizzard vs. Xtant Medical Holdings | Activision Blizzard vs. Oatly Group AB | Activision Blizzard vs. Compania Cervecerias Unidas | Activision Blizzard vs. Treace Medical Concepts |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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