Correlation Between MOLSON COORS and CompuGroup Medical

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

Diversification Opportunities for MOLSON COORS and CompuGroup Medical

0.65

Correlation Coefficient

MOLSON COORS  CompuGroup Medical

Poor diversification

The 3 months correlation between MOLSON and CompuGroup is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and CompuGroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical 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 CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and CompuGroup Medical go up and down completely randomly.

Pair Corralation between MOLSON COORS and CompuGroup Medical

Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the CompuGroup Medical. In addition to that, MOLSON COORS is 3.95 times more volatile than CompuGroup Medical SE. It trades about -0.1 of its total potential returns per unit of risk. CompuGroup Medical SE is currently generating about 0.1 per unit of volatility. If you would invest  2,186  in CompuGroup Medical SE on October 12, 2024 and sell it today you would earn a total of  14.00  from holding CompuGroup Medical SE or generate 0.64% return on investment over 90 days.

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

MOLSON RS BEVERAGE  vs.  CompuGroup Medical SE

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 fragile basic indicators, MOLSON COORS may actually be approaching a critical reversion point that can send shares even higher in February 2025.

CompuGroup Medical

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CompuGroup Medical SE are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, CompuGroup Medical unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MOLSON COORS and CompuGroup Medical

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

The idea behind MOLSON RS BEVERAGE and CompuGroup Medical 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.