Correlation Between MOLSON COORS and CanSino Biologics

Can any of the company-specific risk be diversified away by investing in both MOLSON COORS and CanSino Biologics 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 CanSino Biologics 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 CanSino Biologics, you can compare the effects of market volatilities on MOLSON COORS and CanSino Biologics 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 CanSino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOLSON COORS and CanSino Biologics.

Diversification Opportunities for MOLSON COORS and CanSino Biologics

-0.22

Correlation Coefficient

MOLSON COORS  CanSino Biologics

Very good diversification

The 3 months correlation between MOLSON and CanSino is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and CanSino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CanSino Biologics 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 CanSino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CanSino Biologics has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and CanSino Biologics go up and down completely randomly.

Pair Corralation between MOLSON COORS and CanSino Biologics

Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the CanSino Biologics. In addition to that, MOLSON COORS is 1.24 times more volatile than CanSino Biologics. It trades about -0.22 of its total potential returns per unit of risk. CanSino Biologics is currently generating about -0.02 per unit of volatility. If you would invest  379.00  in CanSino Biologics on April 5, 2025 and sell it today you would lose (6.00) from holding CanSino Biologics or give up 1.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

MOLSON RS BEVERAGE  vs.  CanSino Biologics

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 uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CanSino Biologics

Risk-Adjusted Performance

OK

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

Pair Trading with MOLSON COORS and CanSino Biologics

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

The idea behind MOLSON RS BEVERAGE and CanSino Biologics 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.