Correlation Between Molson Coors and Marti Technologies

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

Diversification Opportunities for Molson Coors and Marti Technologies

-0.07

Correlation Coefficient

Molson Coors  Marti Technologies

Good diversification

The 3 months correlation between Molson and Marti is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies 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 Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of Molson Coors i.e., Molson Coors and Marti Technologies go up and down completely randomly.

Pair Corralation between Molson Coors and Marti Technologies

Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 0.39 times more return on investment than Marti Technologies. However, Molson Coors Brewing is 2.57 times less risky than Marti Technologies. It trades about 0.05 of its potential returns per unit of risk. Marti Technologies is currently generating about 0.01 per unit of risk. If you would invest  5,738  in Molson Coors Brewing on December 27, 2024 and sell it today you would earn a total of  318.00  from holding Molson Coors Brewing or generate 5.54% return on investment over 90 days.

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

Molson Coors Brewing  vs.  Marti Technologies

Molson Coors Brewing

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Molson Coors Brewing are ranked lower than 4 (%) 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.

Marti Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marti Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Marti Technologies is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Molson Coors and Marti Technologies

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

The idea behind Molson Coors Brewing and Marti Technologies 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.