Correlation Between Monster Beverage and FC Investment
Can any of the company-specific risk be diversified away by investing in both Monster Beverage and FC Investment 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 FC Investment 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 FC Investment Trust, you can compare the effects of market volatilities on Monster Beverage and FC Investment 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 FC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and FC Investment.
Diversification Opportunities for Monster Beverage and FC Investment
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Monster and FCIT is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage Corp and FC Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FC Investment Trust 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 FC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FC Investment Trust has no effect on the direction of Monster Beverage i.e., Monster Beverage and FC Investment go up and down completely randomly.
Pair Corralation between Monster Beverage and FC Investment
Assuming the 90 days trading horizon Monster Beverage Corp is expected to generate 2.72 times more return on investment than FC Investment. However, Monster Beverage is 2.72 times more volatile than FC Investment Trust. It trades about 0.18 of its potential returns per unit of risk. FC Investment Trust is currently generating about 0.07 per unit of risk. If you would invest 5,947 in Monster Beverage Corp on July 20, 2025 and sell it today you would earn a total of 1,049 from holding Monster Beverage Corp or generate 17.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
Monster Beverage Corp vs. FC Investment Trust
Performance |
| Timeline |
| Monster Beverage Corp |
| FC Investment Trust |
Monster Beverage and FC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and FC Investment
The main advantage of trading using opposite Monster Beverage and FC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage position performs unexpectedly, FC Investment 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 FC Investment will offset losses from the drop in FC Investment's long position.| Monster Beverage vs. MG Credit Income | Monster Beverage vs. UNIQA Insurance Group | Monster Beverage vs. Berner Kantonalbank AG | Monster Beverage vs. Erste Group Bank |
| FC Investment vs. Live Nation Entertainment | FC Investment vs. SoftBank Group Corp | FC Investment vs. Centaur Media | FC Investment vs. National Bank of |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |