Correlation Between Molson Coors and Guardian Pharmacy

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

By analyzing existing cross correlation between Molson Coors Brewing and Guardian Pharmacy Services,, you can compare the effects of market volatilities on Molson Coors and Guardian Pharmacy 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 Guardian Pharmacy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Guardian Pharmacy.

Diversification Opportunities for Molson Coors and Guardian Pharmacy

-0.49

Correlation Coefficient

Molson Coors  Guardian Pharmacy

Very good diversification

The 3 months correlation between Molson and Guardian is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Guardian Pharmacy Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Pharmacy 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 Coors Brewing are associated (or correlated) with Guardian Pharmacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Pharmacy has no effect on the direction of Molson Coors i.e., Molson Coors and Guardian Pharmacy go up and down completely randomly.

Pair Corralation between Molson Coors and Guardian Pharmacy

Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 0.68 times more return on investment than Guardian Pharmacy. However, Molson Coors Brewing is 1.46 times less risky than Guardian Pharmacy. It trades about 0.06 of its potential returns per unit of risk. Guardian Pharmacy Services, is currently generating about 0.01 per unit of risk. If you would invest  5,645  in Molson Coors Brewing on December 28, 2024 and sell it today you would earn a total of  408.00  from holding Molson Coors Brewing or generate 7.23% return on investment over 90 days.

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

Molson Coors Brewing  vs.  Guardian Pharmacy Services,

Molson Coors Brewing

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Molson Coors Brewing are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Molson Coors may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Guardian Pharmacy

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Guardian Pharmacy Services, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Guardian Pharmacy is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Molson Coors and Guardian Pharmacy

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

The idea behind Molson Coors Brewing and Guardian Pharmacy Services, 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.

Check out your portfolio center.

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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.