Correlation Between Coca Cola and Blackstone
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Blackstone 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 Blackstone 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 Blackstone Group, you can compare the effects of market volatilities on Coca Cola and Blackstone 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 Blackstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Blackstone.
Diversification Opportunities for Coca Cola and Blackstone
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coca and Blackstone is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Blackstone Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Group 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 Blackstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Group has no effect on the direction of Coca Cola i.e., Coca Cola and Blackstone go up and down completely randomly.
Pair Corralation between Coca Cola and Blackstone
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.32 times more return on investment than Blackstone. However, The Coca Cola is 3.09 times less risky than Blackstone. It trades about -0.22 of its potential returns per unit of risk. Blackstone Group is currently generating about -0.13 per unit of risk. If you would invest 6,075 in The Coca Cola on January 20, 2024 and sell it today you would lose (184.00) from holding The Coca Cola or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Blackstone Group
Performance |
| Timeline |
| Coca Cola |
| Blackstone Group |
Coca Cola and Blackstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Blackstone
The main advantage of trading using opposite Coca Cola and Blackstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Blackstone 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 Blackstone will offset losses from the drop in Blackstone'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 |
| Blackstone vs. T Rowe Price | Blackstone vs. State Street Corp | Blackstone vs. KKR Co LP | Blackstone vs. Brookfield Asset Management |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |