Correlation Between Coca Cola and Atreca

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Can any of the company-specific risk be diversified away by investing in both Coca Cola and Atreca 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 Atreca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coca-Cola Co and Atreca Inc, you can compare the effects of market volatilities on Coca Cola and Atreca 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 Atreca. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Atreca.

Diversification Opportunities for Coca Cola and Atreca

  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Coca Cola and Atreca is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Coca-Cola Co and Atreca Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atreca Inc 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 Coca-Cola Co are associated (or correlated) with Atreca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atreca Inc has no effect on the direction of Coca Cola i.e., Coca Cola and Atreca go up and down completely randomly.

Pair Corralation between Coca Cola and Atreca

Allowing for the 90-day total investment horizon Coca-Cola Co is expected to under-perform the Atreca. But the stock apears to be less risky and, when comparing its historical volatility, Coca-Cola Co is 8.45 times less risky than Atreca. The stock trades about -0.08 of its potential returns per unit of risk. The Atreca Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  78.00  in Atreca Inc on December 26, 2022 and sell it today you would earn a total of  45.00  from holding Atreca Inc or generate 57.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

Coca-Cola Co  vs.  Atreca Inc

 Performance (%) 

Coca Cola Performance

0 of 100

Over the last 90 days Coca-Cola Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Coca Cola is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the insiders.
Atreca Inc 

Atreca Performance

10 of 100

Compared to the overall equity markets, risk-adjusted returns on investments in Atreca Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain technical and fundamental indicators, Atreca disclosed solid returns over the last few months and may actually be approaching a breakup point.

Coca Cola and Atreca Volatility Contrast

   Predicted Return Density   

Pair Trading with Coca Cola and Atreca

The main advantage of trading using opposite Coca Cola and Atreca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Atreca 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 Atreca will offset losses from the drop in Atreca's long position.
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The idea behind Coca-Cola Co and Atreca Inc 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.
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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 Fund Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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