Correlation Between Wealthsimple Shariah and Molson Coors

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

By analyzing existing cross correlation between Wealthsimple Shariah World and Molson Coors Brewing, you can compare the effects of market volatilities on Wealthsimple Shariah and Molson Coors 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 Wealthsimple Shariah with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wealthsimple Shariah and Molson Coors.

Diversification Opportunities for Wealthsimple Shariah and Molson Coors

-0.29

Correlation Coefficient

Wealthsimple Shariah  Molson Coors

Very good diversification

The 3 months correlation between Wealthsimple and Molson is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Wealthsimple Shariah World and Molson Coors Brewing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molson Coors Brewing and Wealthsimple Shariah 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 Wealthsimple Shariah World are associated (or correlated) with Molson Coors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molson Coors Brewing has no effect on the direction of Wealthsimple Shariah i.e., Wealthsimple Shariah and Molson Coors go up and down completely randomly.

Pair Corralation between Wealthsimple Shariah and Molson Coors

Assuming the 90 days trading horizon Wealthsimple Shariah World is not expected to generate positive returns. However, Wealthsimple Shariah World is 2.56 times less risky than Molson Coors. It waists most of its returns potential to compensate for thr risk taken. Molson Coors is generating about -0.1 per unit of risk. If you would invest  3,216  in Wealthsimple Shariah World on August 20, 2025 and sell it today you would lose (4.00) from holding Wealthsimple Shariah World or give up 0.12% of portfolio value over 90 days.

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

Wealthsimple Shariah World  vs.  Molson Coors Brewing

Wealthsimple Shariah

Risk-Adjusted Performance

Weakest

Over the last 90 days Wealthsimple Shariah World has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Wealthsimple Shariah is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Molson Coors Brewing

Risk-Adjusted Performance

Weakest

Over the last 90 days Molson Coors Brewing has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Wealthsimple Shariah and Molson Coors

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

The idea behind Wealthsimple Shariah World and Molson Coors Brewing 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.