Correlation Between Molson Coors and SAIHEAT

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

Diversification Opportunities for Molson Coors and SAIHEAT

0.18

Correlation Coefficient

Molson Coors  SAIHEAT

Average diversification

The 3 months correlation between Molson and SAIHEAT is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited 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 SAIHEAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIHEAT Limited has no effect on the direction of Molson Coors i.e., Molson Coors and SAIHEAT go up and down completely randomly.

Pair Corralation between Molson Coors and SAIHEAT

Considering the 90-day investment horizon Molson Coors Brewing is expected to under-perform the SAIHEAT. But the stock apears to be less risky and, when comparing its historical volatility, Molson Coors Brewing is 2.74 times less risky than SAIHEAT. The stock trades about -0.17 of its potential returns per unit of risk. The SAIHEAT Limited is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  9.15  in SAIHEAT Limited on October 23, 2024 and sell it today you would lose (0.15) from holding SAIHEAT Limited or give up 1.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	38.89%
Values	Daily Returns

Molson Coors Brewing  vs.  SAIHEAT Limited

Molson Coors Brewing

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Molson Coors Brewing has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Molson Coors is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

SAIHEAT Limited

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SAIHEAT Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Molson Coors and SAIHEAT

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

The idea behind Molson Coors Brewing and SAIHEAT Limited 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.