Correlation Between MOLSON COORS and Agricultural Bank

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

Diversification Opportunities for MOLSON COORS and Agricultural Bank

-0.28

Correlation Coefficient

MOLSON COORS  Agricultural Bank

Very good diversification

The 3 months correlation between MOLSON and Agricultural is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding MOLSON RS BEVERAGE and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of MOLSON COORS i.e., MOLSON COORS and Agricultural Bank go up and down completely randomly.

Pair Corralation between MOLSON COORS and Agricultural Bank

Assuming the 90 days trading horizon MOLSON RS BEVERAGE is expected to under-perform the Agricultural Bank. In addition to that, MOLSON COORS is 1.54 times more volatile than Agricultural Bank of. It trades about -0.04 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.22 per unit of volatility. If you would invest  55.00  in Agricultural Bank of on March 31, 2025 and sell it today you would earn a total of  6.00  from holding Agricultural Bank of or generate 10.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

MOLSON RS BEVERAGE  vs.  Agricultural Bank of

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

Agricultural Bank

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Agricultural Bank of are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Agricultural Bank may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with MOLSON COORS and Agricultural Bank

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

The idea behind MOLSON RS BEVERAGE and Agricultural Bank of 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.