Correlation Between CHIBA BANK and MOLSON COORS

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

By analyzing existing cross correlation between CHIBA BANK and MOLSON RS BEVERAGE, you can compare the effects of market volatilities on CHIBA BANK 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 CHIBA BANK with a short position of MOLSON COORS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHIBA BANK and MOLSON COORS.

Diversification Opportunities for CHIBA BANK and MOLSON COORS

-0.47

Correlation Coefficient

CHIBA BANK  MOLSON COORS

Very good diversification

The 3 months correlation between CHIBA and MOLSON is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding CHIBA BANK and MOLSON RS BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS BEVERAGE and CHIBA BANK 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 CHIBA BANK 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 RS BEVERAGE has no effect on the direction of CHIBA BANK i.e., CHIBA BANK and MOLSON COORS go up and down completely randomly.

Pair Corralation between CHIBA BANK and MOLSON COORS

Assuming the 90 days trading horizon CHIBA BANK is expected to generate 0.97 times more return on investment than MOLSON COORS. However, CHIBA BANK is 1.03 times less risky than MOLSON COORS. It trades about 0.03 of its potential returns per unit of risk. MOLSON RS BEVERAGE is currently generating about -0.01 per unit of risk. If you would invest  652.00  in CHIBA BANK on April 16, 2025 and sell it today you would earn a total of  128.00  from holding CHIBA BANK or generate 19.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CHIBA BANK  vs.  MOLSON RS BEVERAGE

CHIBA BANK

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CHIBA BANK are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, CHIBA BANK may actually be approaching a critical reversion point that can send shares even higher in August 2025.

MOLSON RS BEVERAGE

Risk-Adjusted Performance

Very Weak

Over the last 90 days MOLSON RS BEVERAGE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with CHIBA BANK and MOLSON COORS

The main advantage of trading using opposite CHIBA BANK and MOLSON COORS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHIBA BANK 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's long position.

The idea behind CHIBA BANK and MOLSON RS 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.