Correlation Between Molson Coors and QXO,

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

Diversification Opportunities for Molson Coors and QXO,

-0.44

Correlation Coefficient

Molson Coors  QXO,

Very good diversification

The 3 months correlation between Molson and QXO, is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and QXO, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QXO, Inc 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 QXO,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QXO, Inc has no effect on the direction of Molson Coors i.e., Molson Coors and QXO, go up and down completely randomly.

Pair Corralation between Molson Coors and QXO,

Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 0.73 times more return on investment than QXO,. However, Molson Coors Brewing is 1.37 times less risky than QXO,. It trades about 0.05 of its potential returns per unit of risk. QXO, Inc is currently generating about -0.06 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	Very Weak
Accuracy	100.0%
Values	Daily Returns

Molson Coors Brewing  vs.  QXO, Inc

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.

QXO, Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days QXO, Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Molson Coors and QXO,

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

The idea behind Molson Coors Brewing and QXO, Inc 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.