Correlation Between Molson Coors and A SPAC

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

By analyzing existing cross correlation between Molson Coors Beverage and A SPAC III, you can compare the effects of market volatilities on Molson Coors and A SPAC 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 A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and A SPAC.

Diversification Opportunities for Molson Coors and A SPAC

-0.67

Correlation Coefficient

Molson Coors  A SPAC

Excellent diversification

The 3 months correlation between Molson and ASPC is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage and A SPAC III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC III 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 Coors Beverage are associated (or correlated) with A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC III has no effect on the direction of Molson Coors i.e., Molson Coors and A SPAC go up and down completely randomly.

Pair Corralation between Molson Coors and A SPAC

Assuming the 90 days horizon Molson Coors Beverage is expected to under-perform the A SPAC. In addition to that, Molson Coors is 15.65 times more volatile than A SPAC III. It trades about -0.04 of its total potential returns per unit of risk. A SPAC III is currently generating about 0.12 per unit of volatility. If you would invest  1,015  in A SPAC III on May 9, 2025 and sell it today you would earn a total of  11.00  from holding A SPAC III or generate 1.08% return on investment over 90 days.

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

Molson Coors Beverage  vs.  A SPAC III

Molson Coors Beverage

Risk-Adjusted Performance

Weakest

Over the last 90 days Molson Coors Beverage has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Molson Coors is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

A SPAC III

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in A SPAC III are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, A SPAC is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Molson Coors and A SPAC

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

The idea behind Molson Coors Beverage and A SPAC III 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.

Check out your portfolio center.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.