Correlation Between Coca Cola and China New
Can any of the company-specific risk be diversified away by investing in both Coca Cola and China New 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 Coca Cola and China New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Coca Cola and China New Borun, you can compare the effects of market volatilities on Coca Cola and China New 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 Coca Cola with a short position of China New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and China New.
Diversification Opportunities for Coca Cola and China New
Pay attention - limited upside
The 3 months correlation between Coca and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and China New Borun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China New Borun and Coca Cola 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 The Coca Cola are associated (or correlated) with China New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China New Borun has no effect on the direction of Coca Cola i.e., Coca Cola and China New go up and down completely randomly.
Pair Corralation between Coca Cola and China New
If you would invest 6,054 in The Coca Cola on January 26, 2024 and sell it today you would earn a total of 101.00 from holding The Coca Cola or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
The Coca Cola vs. China New Borun
Performance |
| Timeline |
| Coca Cola |
| China New Borun |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and China New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and China New
The main advantage of trading using opposite Coca Cola and China New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, China New 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 China New will offset losses from the drop in China New's long position.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper |
| China New vs. Cumberland Pharmaceuticals | China New vs. BioNTech SE | China New vs. Neogen | China New vs. Calliditas Therapeutics |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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