Correlation Between MOLSON COORS and Onxeo SA

Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and Onxeo SA 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 Onxeo SA 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 Onxeo SA, you can compare the effects of market volatilities on MOLSON COORS and Onxeo SA 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 Onxeo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and Onxeo SA.

Diversification Opportunities for MOLSON COORS and Onxeo SA

-0.64

Correlation Coefficient

MOLSON COORS  Onxeo SA

Excellent diversification

The 3 months correlation between MOLSON and Onxeo is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and Onxeo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onxeo SA 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 Onxeo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onxeo SA has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and Onxeo SA go up and down completely randomly.

Pair Corralation between MOLSON COORS and Onxeo SA

Assuming the 90 days trading horizon MOLSON COORS is expected to generate 4.95 times less return on investment than Onxeo SA. But when comparing it to its historical volatility, MOLSON RS BEVERAGE is 3.39 times less risky than Onxeo SA. It trades about 0.01 of its potential returns per unit of risk. Onxeo SA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  14.00  in Onxeo SA on October 9, 2024 and sell it today you would lose (6.21) from holding Onxeo SA or give up 44.36% of portfolio value over 90 days.

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

MOLSON RS BEVERAGE  vs.  Onxeo SA

MOLSON RS BEVERAGE

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MOLSON RS BEVERAGE are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, MOLSON COORS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Onxeo SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Onxeo SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Onxeo SA 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 Onxeo SA

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

The idea behind MOLSON RS BEVERAGE and Onxeo SA 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.