Correlation Between Sabre Corpo and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Sabre Corpo 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 Sabre Corpo and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Corpo and The Coca Cola, you can compare the effects of market volatilities on Sabre Corpo 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 Sabre Corpo with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Corpo and Coca Cola.
Diversification Opportunities for Sabre Corpo and Coca Cola
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sabre and Coca is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Corpo and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Sabre Corpo 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 Sabre Corpo 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 Sabre Corpo i.e., Sabre Corpo and Coca Cola go up and down completely randomly.
Pair Corralation between Sabre Corpo and Coca Cola
Given the investment horizon of 90 days Sabre Corpo is expected to generate 3.58 times more return on investment than Coca Cola. However, Sabre Corpo is 3.58 times more volatile than The Coca Cola. It trades about 0.29 of its potential returns per unit of risk. The Coca Cola is currently generating about 0.09 per unit of risk. If you would invest 230.00 in Sabre Corpo on January 26, 2024 and sell it today you would earn a total of 46.00 from holding Sabre Corpo or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabre Corpo vs. The Coca Cola
Performance |
| Timeline |
| Sabre Corpo |
| Coca Cola |
Sabre Corpo and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabre Corpo and Coca Cola
The main advantage of trading using opposite Sabre Corpo and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Corpo 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.| Sabre Corpo vs. Palo Alto Networks | Sabre Corpo vs. Zscaler | Sabre Corpo vs. Cloudflare | Sabre Corpo vs. Okta Inc |
| Coca Cola vs. Aquagold International | Coca Cola vs. Morningstar Unconstrained Allocation | Coca Cola vs. Thrivent High Yield | Coca Cola vs. Via Renewables |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |