Correlation Between HYBRIGENICS and MOLSON RS

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

By analyzing existing cross correlation between HYBRIGENICS A and MOLSON RS CDA, you can compare the effects of market volatilities on HYBRIGENICS and MOLSON RS 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 HYBRIGENICS with a short position of MOLSON RS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYBRIGENICS and MOLSON RS.

Diversification Opportunities for HYBRIGENICS and MOLSON RS

-0.31

Correlation Coefficient

HYBRIGENICS  MOLSON RS

Very good diversification

The 3 months correlation between HYBRIGENICS and MOLSON is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding HYBRIGENICS A and MOLSON RS CDA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS CDA and HYBRIGENICS 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 HYBRIGENICS A are associated (or correlated) with MOLSON RS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOLSON RS CDA has no effect on the direction of HYBRIGENICS i.e., HYBRIGENICS and MOLSON RS go up and down completely randomly.

Pair Corralation between HYBRIGENICS and MOLSON RS

Assuming the 90 days trading horizon HYBRIGENICS A is expected to under-perform the MOLSON RS. In addition to that, HYBRIGENICS is 3.13 times more volatile than MOLSON RS CDA. It trades about -0.25 of its total potential returns per unit of risk. MOLSON RS CDA is currently generating about -0.03 per unit of volatility. If you would invest  5,641  in MOLSON RS CDA on September 24, 2024 and sell it today you would lose (41.00) from holding MOLSON RS CDA or give up 0.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

HYBRIGENICS A   vs.  MOLSON RS CDA

HYBRIGENICS A

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HYBRIGENICS A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's fundamental drivers remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

MOLSON RS CDA

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MOLSON RS CDA are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MOLSON RS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HYBRIGENICS and MOLSON RS

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

The idea behind HYBRIGENICS A and MOLSON RS CDA 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.