Correlation Between Kongzhong Corp and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Kongzhong Corp and Coca Cola 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 Kongzhong Corp and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kongzhong Corp and The Coca Cola, you can compare the effects of market volatilities on Kongzhong Corp and Coca Cola 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 Kongzhong Corp with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kongzhong Corp and Coca Cola.
Diversification Opportunities for Kongzhong Corp and Coca Cola
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kongzhong and Coca is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kongzhong Corp and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Kongzhong Corp 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 Kongzhong Corp are associated (or correlated) with Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola has no effect on the direction of Kongzhong Corp i.e., Kongzhong Corp and Coca Cola go up and down completely randomly.
Pair Corralation between Kongzhong Corp and Coca Cola
If you would invest 5,904 in The Coca Cola on January 19, 2024 and sell it today you would lose (53.00) from holding The Coca Cola or give up 0.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kongzhong Corp vs. The Coca Cola
Performance |
| Timeline |
| Kongzhong Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Coca Cola |
Kongzhong Corp and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kongzhong Corp and Coca Cola
The main advantage of trading using opposite Kongzhong Corp and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kongzhong Corp position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Kongzhong Corp vs. Tenaris SA ADR | Kongzhong Corp vs. Helmerich and Payne | Kongzhong Corp vs. Shelf Drilling | Kongzhong Corp vs. Tower Semiconductor |
| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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