Correlation Between Wheaton Precious and MOLSON RS

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

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

Diversification Opportunities for Wheaton Precious and MOLSON RS

-0.64

Correlation Coefficient

Wheaton Precious  MOLSON RS

Excellent diversification

The 3 months correlation between Wheaton and MOLSON is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wheaton Precious Metals and MOLSON RS CDA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOLSON RS CDA and Wheaton Precious 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 Wheaton Precious Metals are associated (or correlated) with MOLSON RS. 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 CDA has no effect on the direction of Wheaton Precious i.e., Wheaton Precious and MOLSON RS go up and down completely randomly.

Pair Corralation between Wheaton Precious and MOLSON RS

Assuming the 90 days horizon Wheaton Precious Metals is expected to generate 1.2 times more return on investment than MOLSON RS. However, Wheaton Precious is 1.2 times more volatile than MOLSON RS CDA. It trades about 0.07 of its potential returns per unit of risk. MOLSON RS CDA is currently generating about -0.16 per unit of risk. If you would invest  7,071  in Wheaton Precious Metals on April 23, 2025 and sell it today you would earn a total of  525.00  from holding Wheaton Precious Metals or generate 7.42% return on investment over 90 days.

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

Wheaton Precious Metals  vs.  MOLSON RS CDA

Wheaton Precious Metals

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Wheaton Precious Metals are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Wheaton Precious may actually be approaching a critical reversion point that can send shares even higher in August 2025.

MOLSON RS CDA

Risk-Adjusted Performance

Very Weak

Over the last 90 days MOLSON RS CDA 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.

Pair Trading with Wheaton Precious and MOLSON RS

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

The idea behind Wheaton Precious Metals and MOLSON RS CDA 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 Global Correlations module to find global opportunities by holding instruments from different markets.