Correlation Between Molson Coors and Aegean Airlines

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

By analyzing existing cross correlation between Molson Coors Beverage and Aegean Airlines SA, you can compare the effects of market volatilities on Molson Coors and Aegean Airlines 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 Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Aegean Airlines.

Diversification Opportunities for Molson Coors and Aegean Airlines

-0.47

Correlation Coefficient

Molson Coors  Aegean Airlines

Very good diversification

The 3 months correlation between Molson and Aegean is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA 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 Beverage are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of Molson Coors i.e., Molson Coors and Aegean Airlines go up and down completely randomly.

Pair Corralation between Molson Coors and Aegean Airlines

Assuming the 90 days trading horizon Molson Coors Beverage is expected to under-perform the Aegean Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Molson Coors Beverage is 1.78 times less risky than Aegean Airlines. The stock trades about -0.14 of its potential returns per unit of risk. The Aegean Airlines SA is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,110  in Aegean Airlines SA on April 25, 2025 and sell it today you would earn a total of  164.00  from holding Aegean Airlines SA or generate 14.77% return on investment over 90 days.

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

Molson Coors Beverage  vs.  Aegean Airlines SA

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 uncertain 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.

Aegean Airlines SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aegean Airlines SA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Aegean Airlines reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Molson Coors and Aegean Airlines

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

The idea behind Molson Coors Beverage and Aegean Airlines SA 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.