Correlation Between Fortuna Silver and Molson Coors

Can any of the company-specific risk be diversified away by investing in both Fortuna Silver and Molson Coors 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 Fortuna Silver and Molson Coors into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Fortuna Silver Mines and Molson Coors Beverage, you can compare the effects of market volatilities on Fortuna Silver and Molson Coors 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 Fortuna Silver with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortuna Silver and Molson Coors.

Diversification Opportunities for Fortuna Silver and Molson Coors

-0.65

Correlation Coefficient

Fortuna Silver  Molson Coors

Excellent diversification

The 3 months correlation between Fortuna and Molson is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Fortuna Silver Mines and Molson Coors Beverage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Beverage and Fortuna Silver 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 Fortuna Silver Mines are associated (or correlated) with Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Beverage has no effect on the direction of Fortuna Silver i.e., Fortuna Silver and Molson Coors go up and down completely randomly.

Pair Corralation between Fortuna Silver and Molson Coors

Assuming the 90 days trading horizon Fortuna Silver Mines is expected to generate 3.67 times more return on investment than Molson Coors. However, Fortuna Silver is 3.67 times more volatile than Molson Coors Beverage. It trades about 0.1 of its potential returns per unit of risk. Molson Coors Beverage is currently generating about -0.1 per unit of risk. If you would invest  831.00  in Fortuna Silver Mines on April 25, 2025 and sell it today you would earn a total of  118.00  from holding Fortuna Silver Mines or generate 14.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	53.97%
Values	Daily Returns

Fortuna Silver Mines  vs.  Molson Coors Beverage

Fortuna Silver Mines

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fortuna Silver Mines are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Fortuna Silver unveiled solid returns over the last few months and may actually be approaching a breakup point.

Molson Coors Beverage

Risk-Adjusted Performance

Very Weak

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 latest unsteady 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.

Pair Trading with Fortuna Silver and Molson Coors

The main advantage of trading using opposite Fortuna Silver and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortuna Silver position performs unexpectedly, Molson Coors 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 Molson Coors will offset losses from the drop in Molson Coors' long position.

The idea behind Fortuna Silver Mines and Molson Coors Beverage 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.