Correlation Between Molson Coors and Western Digital
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Western Digital 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 Western Digital 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 Western Digital, you can compare the effects of market volatilities on Molson Coors and Western Digital 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 Western Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Western Digital.
Diversification Opportunities for Molson Coors and Western Digital
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Molson and Western is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Western Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Digital 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 Western Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Digital has no effect on the direction of Molson Coors i.e., Molson Coors and Western Digital go up and down completely randomly.
Pair Corralation between Molson Coors and Western Digital
Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 0.36 times more return on investment than Western Digital. However, Molson Coors Brewing is 2.75 times less risky than Western Digital. It trades about -0.14 of its potential returns per unit of risk. Western Digital is currently generating about -0.21 per unit of risk. If you would invest 6,024 in Molson Coors Brewing on September 25, 2024 and sell it today you would lose (164.00) from holding Molson Coors Brewing or give up 2.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Molson Coors Brewing vs. Western Digital
Performance |
Timeline |
Molson Coors Brewing |
Western Digital |
Molson Coors and Western Digital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Molson Coors and Western Digital
The main advantage of trading using opposite Molson Coors and Western Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Western Digital 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 Western Digital will offset losses from the drop in Western Digital's long position.Molson Coors vs. Budweiser Brewing | Molson Coors vs. Fomento Economico Mexicano | Molson Coors vs. Heineken NV | Molson Coors vs. Suntory Beverage Food |
Western Digital vs. Cricut Inc | Western Digital vs. AGM Group Holdings | Western Digital vs. TransAct Technologies Incorporated | Western Digital vs. Key Tronic |
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.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |