Correlation Between MaxLinear and MOLSON COORS

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

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

Diversification Opportunities for MaxLinear and MOLSON COORS

0.34

Correlation Coefficient

MaxLinear  MOLSON COORS

Weak diversification

The 3 months correlation between MaxLinear and MOLSON is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding MaxLinear and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE and MaxLinear 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 MaxLinear 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 RS BEVERAGE has no effect on the direction of MaxLinear i.e., MaxLinear and MOLSON COORS go up and down completely randomly.

Pair Corralation between MaxLinear and MOLSON COORS

Assuming the 90 days horizon MaxLinear is expected to generate 2.02 times more return on investment than MOLSON COORS. However, MaxLinear is 2.02 times more volatile than MOLSON RS BEVERAGE. It trades about 0.04 of its potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about 0.0 per unit of risk. If you would invest  2,036  in MaxLinear on October 24, 2024 and sell it today you would earn a total of  350.00  from holding MaxLinear or generate 17.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.6%
Values	Daily Returns

MaxLinear  vs.  MOLSON RS BEVERAGE

MaxLinear

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MaxLinear are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, MaxLinear reported solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with MaxLinear and MOLSON COORS

The main advantage of trading using opposite MaxLinear and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MaxLinear 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's long position.

The idea behind MaxLinear and MOLSON RS BEVERAGE 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.