Correlation Between Molson Coors and Vapor

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

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

Diversification Opportunities for Molson Coors and Vapor

0.0

Correlation Coefficient

Molson Coors  Vapor

Pay attention - limited upside

The 3 months correlation between Molson and Vapor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Molson Coors Brewing and Vapor Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vapor Group 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 Brewing are associated (or correlated) with Vapor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vapor Group has no effect on the direction of Molson Coors i.e., Molson Coors and Vapor go up and down completely randomly.

Pair Corralation between Molson Coors and Vapor

Considering the 90-day investment horizon Molson Coors Brewing is expected to under-perform the Vapor. But the stock apears to be less risky and, when comparing its historical volatility, Molson Coors Brewing is 94.33 times less risky than Vapor. The stock trades about -0.18 of its potential returns per unit of risk. The Vapor Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Vapor Group on May 6, 2025 and sell it today you would earn a total of  0.00  from holding Vapor Group or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Molson Coors Brewing  vs.  Vapor Group

Molson Coors Brewing

Risk-Adjusted Performance

Very Weak

Over the last 90 days Molson Coors Brewing has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Vapor Group

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Vapor Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, Vapor reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Molson Coors and Vapor

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

The idea behind Molson Coors Brewing and Vapor Group 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.