Correlation Between Monster Beverage and Amicorp FS
Can any of the company-specific risk be diversified away by investing in both Monster Beverage and Amicorp FS 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 Monster Beverage and Amicorp FS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monster Beverage Corp and Amicorp FS PLC, you can compare the effects of market volatilities on Monster Beverage and Amicorp FS 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 Monster Beverage with a short position of Amicorp FS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and Amicorp FS.
Diversification Opportunities for Monster Beverage and Amicorp FS
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Monster and Amicorp is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp and Amicorp FS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amicorp FS PLC and Monster Beverage 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 Monster Beverage Corp are associated (or correlated) with Amicorp FS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amicorp FS PLC has no effect on the direction of Monster Beverage i.e., Monster Beverage and Amicorp FS go up and down completely randomly.
Pair Corralation between Monster Beverage and Amicorp FS
Assuming the 90 days trading horizon Monster Beverage Corp is expected to generate 16.88 times more return on investment than Amicorp FS. However, Monster Beverage is 16.88 times more volatile than Amicorp FS PLC. It trades about 0.23 of its potential returns per unit of risk. Amicorp FS PLC is currently generating about 0.12 per unit of risk. If you would invest 6,243 in Monster Beverage Corp on September 2, 2025 and sell it today you would earn a total of 1,247 from holding Monster Beverage Corp or generate 19.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monster Beverage Corp vs. Amicorp FS PLC
Performance |
| Timeline |
| Monster Beverage Corp |
| Amicorp FS PLC |
Monster Beverage and Amicorp FS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and Amicorp FS
The main advantage of trading using opposite Monster Beverage and Amicorp FS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage position performs unexpectedly, Amicorp FS 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 Amicorp FS will offset losses from the drop in Amicorp FS's long position.| Monster Beverage vs. Edinburgh Worldwide Investment | Monster Beverage vs. Fresenius Medical Care | Monster Beverage vs. Canadian General Investments | Monster Beverage vs. Ruffer Investment |
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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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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