Correlation Between Coca Cola and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Coca Cola 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 Coca Cola and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coca Cola Femsa SAB and Coca Cola European Partners, you can compare the effects of market volatilities on Coca Cola 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 Coca Cola with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Coca Cola.
Diversification Opportunities for Coca Cola and Coca Cola
Weak diversification
The 3 months correlation between Coca and Coca is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola Femsa SAB and Coca Cola European Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola European 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 Femsa SAB 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 European has no effect on the direction of Coca Cola i.e., Coca Cola and Coca Cola go up and down completely randomly.
Pair Corralation between Coca Cola and Coca Cola
Considering the 90-day investment horizon Coca Cola Femsa SAB is expected to generate 1.48 times more return on investment than Coca Cola. However, Coca Cola is 1.48 times more volatile than Coca Cola European Partners. It trades about 0.02 of its potential returns per unit of risk. Coca Cola European Partners is currently generating about -0.16 per unit of risk. If you would invest 9,415 in Coca Cola Femsa SAB on January 25, 2024 and sell it today you would earn a total of 38.00 from holding Coca Cola Femsa SAB or generate 0.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Coca Cola Femsa SAB vs. Coca Cola European Partners
Performance |
Timeline |
Coca Cola Femsa |
Coca Cola European |
Coca Cola and Coca Cola Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coca Cola and Coca Cola
The main advantage of trading using opposite Coca Cola and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola 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.Coca Cola vs. Fomento Economico Mexicano | Coca Cola vs. Grupo Televisa SAB | Coca Cola vs. Grupo Aeroportuario del | Coca Cola vs. Grupo Aeroportuario del |
Coca Cola vs. Vita Coco | Coca Cola vs. Primo Water Corp | Coca Cola vs. Coca Cola Femsa SAB | Coca Cola vs. Embotelladora Andina SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Stocks Directory Find actively traded stocks across global markets |