Correlation Between Molson Coors and Molson Coors

Can any of the company-specific risk be diversified away by investing in both Molson Coors 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 Molson Coors and Molson Coors 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 Molson Coors Brewing, you can compare the effects of market volatilities on Molson Coors 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 Molson Coors with a short position of Molson Coors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Molson Coors and Molson Coors.

Diversification Opportunities for Molson Coors and Molson Coors

0.69

Correlation Coefficient

Molson Coors  Molson Coors

Poor diversification

The 3 months correlation between Molson and Molson is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Beverage 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 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 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 Molson Coors i.e., Molson Coors and Molson Coors go up and down completely randomly.

Pair Corralation between Molson Coors and Molson Coors

Assuming the 90 days horizon Molson Coors Beverage is expected to generate 1.3 times more return on investment than Molson Coors. However, Molson Coors is 1.3 times more volatile than Molson Coors Brewing. It trades about -0.1 of its potential returns per unit of risk. Molson Coors Brewing is currently generating about -0.14 per unit of risk. If you would invest  5,823  in Molson Coors Beverage on August 3, 2025 and sell it today you would lose (1,243) from holding Molson Coors Beverage or give up 21.35% of portfolio value over 90 days.

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

Molson Coors Beverage  vs.  Molson Coors Brewing

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 unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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 Molson Coors and Molson Coors

The main advantage of trading using opposite Molson Coors and Molson Coors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Molson Coors 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 Molson Coors Beverage 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.