Correlation Between Citigroup and Molson Coors

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

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

Diversification Opportunities for Citigroup and Molson Coors

0.06

Correlation Coefficient

Citigroup  Molson Coors

Significant diversification

The 3 months correlation between Citigroup and Molson is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Molson Coors Brewing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Brewing and Citigroup 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 Citigroup 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 Brewing has no effect on the direction of Citigroup i.e., Citigroup and Molson Coors go up and down completely randomly.

Pair Corralation between Citigroup and Molson Coors

Taking into account the 90-day investment horizon Citigroup is expected to generate 0.85 times more return on investment than Molson Coors. However, Citigroup is 1.18 times less risky than Molson Coors. It trades about 0.14 of its potential returns per unit of risk. Molson Coors Brewing is currently generating about 0.01 per unit of risk. If you would invest  9,920  in Citigroup on September 14, 2025 and sell it today you would earn a total of  1,254  from holding Citigroup or generate 12.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Citigroup  vs.  Molson Coors Brewing

Citigroup

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Citigroup are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Citigroup may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Molson Coors Brewing

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Molson Coors Brewing are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Molson Coors is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Citigroup and Molson Coors

The main advantage of trading using opposite Citigroup and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup 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 Citigroup and Molson Coors Brewing 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.