Correlation Between Molson Coors and Constellation Brands
Can any of the company-specific risk be diversified away by investing in both Molson Coors and Constellation Brands 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 Constellation Brands 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 Constellation Brands Class, you can compare the effects of market volatilities on Molson Coors and Constellation Brands 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 Constellation Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Constellation Brands.
Diversification Opportunities for Molson Coors and Constellation Brands
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Molson and Constellation is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Constellation Brands Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Constellation Brands 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 Constellation Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Constellation Brands has no effect on the direction of Molson Coors i.e., Molson Coors and Constellation Brands go up and down completely randomly.
Pair Corralation between Molson Coors and Constellation Brands
Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 0.72 times more return on investment than Constellation Brands. However, Molson Coors Brewing is 1.38 times less risky than Constellation Brands. It trades about -0.01 of its potential returns per unit of risk. Constellation Brands Class is currently generating about -0.1 per unit of risk. If you would invest 5,127 in Molson Coors Brewing on June 11, 2025 and sell it today you would lose (88.00) from holding Molson Coors Brewing or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Molson Coors Brewing vs. Constellation Brands Class
Performance |
| Timeline |
| Molson Coors Brewing |
| Constellation Brands |
Molson Coors and Constellation Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Molson Coors and Constellation Brands
The main advantage of trading using opposite Molson Coors and Constellation Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Constellation Brands 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 Constellation Brands will offset losses from the drop in Constellation Brands' long position.| Molson Coors vs. Budweiser Brewing | Molson Coors vs. Boston Beer | Molson Coors vs. Anheuser Busch InBev SANV | Molson Coors vs. Ambev SA ADR |
| Constellation Brands vs. Diageo PLC ADR | Constellation Brands vs. Brown Forman | Constellation Brands vs. MGP Ingredients | Constellation Brands vs. Molson Coors Brewing |
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 Stocks Directory module to find actively traded stocks across global markets.
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