Correlation Between Regions Financial and MOLSON COORS

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

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

Diversification Opportunities for Regions Financial and MOLSON COORS

-0.17

Correlation Coefficient

Regions Financial  MOLSON COORS

Good diversification

The 3 months correlation between Regions and MOLSON is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial 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 Regions Financial 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 Regions Financial 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 Regions Financial i.e., Regions Financial and MOLSON COORS go up and down completely randomly.

Pair Corralation between Regions Financial and MOLSON COORS

Assuming the 90 days horizon Regions Financial is expected to under-perform the MOLSON COORS. But the stock apears to be less risky and, when comparing its historical volatility, Regions Financial is 2.32 times less risky than MOLSON COORS. The stock trades about -0.17 of its potential returns per unit of risk. The MOLSON RS BEVERAGE is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  5,506  in MOLSON RS BEVERAGE on November 29, 2024 and sell it today you would earn a total of  1,094  from holding MOLSON RS BEVERAGE or generate 19.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Regions Financial  vs.  MOLSON RS BEVERAGE

Regions Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regions Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

MOLSON RS BEVERAGE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MOLSON RS BEVERAGE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, MOLSON COORS reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Regions Financial and MOLSON COORS

The main advantage of trading using opposite Regions Financial and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial 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 Regions Financial 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.