Correlation Between Molson Coors and Cimpress

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Can any of the company-specific risk be diversified away by investing in both Molson Coors and Cimpress 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 Cimpress 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 Cimpress NV, you can compare the effects of market volatilities on Molson Coors and Cimpress 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 Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Cimpress.

Diversification Opportunities for Molson Coors and Cimpress

-0.39
  Correlation Coefficient

Very good diversification

The 3 months correlation between Molson and Cimpress is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV 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 Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of Molson Coors i.e., Molson Coors and Cimpress go up and down completely randomly.

Pair Corralation between Molson Coors and Cimpress

Considering the 90-day investment horizon Molson Coors Brewing is expected to generate 0.58 times more return on investment than Cimpress. However, Molson Coors Brewing is 1.73 times less risky than Cimpress. It trades about 0.0 of its potential returns per unit of risk. Cimpress NV is currently generating about -0.02 per unit of risk. If you would invest  5,633  in Molson Coors Brewing on August 2, 2024 and sell it today you would lose (85.00) from holding Molson Coors Brewing or give up 1.51% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Molson Coors Brewing  vs.  Cimpress NV

 Performance 
       Timeline  
Molson Coors Brewing 

Risk-Adjusted Performance

5 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Molson Coors Brewing are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Molson Coors may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Cimpress NV 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Cimpress NV has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in December 2024. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Molson Coors and Cimpress Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Molson Coors and Cimpress

The main advantage of trading using opposite Molson Coors and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors position performs unexpectedly, Cimpress 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 Cimpress will offset losses from the drop in Cimpress' long position.
The idea behind Molson Coors Brewing and Cimpress NV 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

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