Correlation Between MOLSON COORS and AAC TECHNOLOGHLDGADR

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

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

Diversification Opportunities for MOLSON COORS and AAC TECHNOLOGHLDGADR

-0.43

Correlation Coefficient

MOLSON COORS  AAC TECHNOLOGHLDGADR

Very good diversification

The 3 months correlation between MOLSON and AAC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and AAC TECHNOLOGHLDGADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC TECHNOLOGHLDGADR 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 RS BEVERAGE are associated (or correlated) with AAC TECHNOLOGHLDGADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC TECHNOLOGHLDGADR has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and AAC TECHNOLOGHLDGADR go up and down completely randomly.

Pair Corralation between MOLSON COORS and AAC TECHNOLOGHLDGADR

Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the AAC TECHNOLOGHLDGADR. But the stock apears to be less risky and, when comparing its historical volatility, MOLSON RS BEVERAGE is 1.19 times less risky than AAC TECHNOLOGHLDGADR. The stock trades about -0.04 of its potential returns per unit of risk. The AAC TECHNOLOGHLDGADR is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  370.00  in AAC TECHNOLOGHLDGADR on April 20, 2025 and sell it today you would earn a total of  78.00  from holding AAC TECHNOLOGHLDGADR or generate 21.08% return on investment over 90 days.

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

MOLSON RS BEVERAGE  vs.  AAC TECHNOLOGHLDGADR

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.

AAC TECHNOLOGHLDGADR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AAC TECHNOLOGHLDGADR are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AAC TECHNOLOGHLDGADR reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MOLSON COORS and AAC TECHNOLOGHLDGADR

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

The idea behind MOLSON RS BEVERAGE and AAC TECHNOLOGHLDGADR 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.