Correlation Between Molson Coors and One Media

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Can any of the company-specific risk be diversified away by investing in both Molson Coors and One Media 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 One Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Molson Coors Beverage and One Media iP, you can compare the effects of market volatilities on Molson Coors and One Media 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 One Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and One Media.

Diversification Opportunities for Molson Coors and One Media

0.6
  Correlation Coefficient

Poor diversification

The 3 months correlation between Molson and One is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and One Media iP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Media iP 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 Beverage are associated (or correlated) with One Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Media iP has no effect on the direction of Molson Coors i.e., Molson Coors and One Media go up and down completely randomly.

Pair Corralation between Molson Coors and One Media

If you would invest  4,335  in Molson Coors Beverage on September 4, 2025 and sell it today you would earn a total of  263.00  from holding Molson Coors Beverage or generate 6.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Molson Coors Beverage  vs.  One Media iP

 Performance 
       Timeline  
Molson Coors Beverage 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Molson Coors Beverage has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Molson Coors is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.
One Media iP 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days One Media iP has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Molson Coors and One Media Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Molson Coors and One Media

The main advantage of trading using opposite Molson Coors and One Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, One Media 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 One Media will offset losses from the drop in One Media's long position.
The idea behind Molson Coors Beverage and One Media iP 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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