The Coca Cola Stock Market Value
| KO Stock | USD 72.47 0.42 0.58% |
| Symbol | Coca |
Coca Cola Price To Book Ratio
Is Soft Drinks & Non-alcoholic Beverages space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Coca Cola. If investors know Coca will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Coca Cola listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.05) | Dividend Share 1.89 | Earnings Share 2.46 | Revenue Per Share 10.768 | Quarterly Revenue Growth 0.033 |
The market value of Coca Cola is measured differently than its book value, which is the value of Coca that is recorded on the company's balance sheet. Investors also form their own opinion of Coca Cola's value that differs from its market value or its book value, called intrinsic value, which is Coca Cola's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Coca Cola's market value can be influenced by many factors that don't directly affect Coca Cola's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Coca Cola's value and its price as these two are different measures arrived at by different means. Investors typically determine if Coca Cola is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coca Cola's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Coca Cola 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Coca Cola's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Coca Cola.
| 08/01/2024 |
| 08/31/2024 |
If you would invest 0.00 in Coca Cola on August 1, 2024 and sell it all today you would earn a total of 0.00 from holding The Coca Cola or generate 0.0% return on investment in Coca Cola over 30 days. Coca Cola is related to or competes with Monster Beverage, Celsius Holdings, Coca Cola, Keurig Dr, PepsiCo, Coca Cola, and Coca Cola. The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide More
Coca Cola Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Coca Cola's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess The Coca Cola upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 0.6978 | |||
| Information Ratio | 0.1722 | |||
| Maximum Drawdown | 3.79 | |||
| Value At Risk | (1.05) | |||
| Potential Upside | 1.6 |
Coca Cola Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Coca Cola's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Coca Cola's standard deviation. In reality, there are many statistical measures that can use Coca Cola historical prices to predict the future Coca Cola's volatility.| Risk Adjusted Performance | 0.2495 | |||
| Jensen Alpha | 0.224 | |||
| Total Risk Alpha | 0.1333 | |||
| Sortino Ratio | 0.1975 | |||
| Treynor Ratio | 1.1 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Coca Cola's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Coca Cola Backtested Returns
Coca Cola appears to be very steady, given 3 months investment horizon. Coca Cola secures Sharpe Ratio (or Efficiency) of 0.3, which signifies that the company had a 0.3% return per unit of standard deviation over the last 3 months. We have found twenty-nine technical indicators for The Coca Cola, which you can use to evaluate the volatility of the firm. Please makes use of Coca Cola's Risk Adjusted Performance of 0.2495, semi deviation of 0.2781, and Mean Deviation of 0.6098 to double-check if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Coca Cola holds a performance score of 23. The firm shows a Beta (market volatility) of 0.23, which signifies not very significant fluctuations relative to the market. As returns on the market increase, Coca Cola's returns are expected to increase less than the market. However, during the bear market, the loss of holding Coca Cola is expected to be smaller as well. Please check Coca Cola's value at risk, and the relationship between the jensen alpha and skewness , to make a quick decision on whether Coca Cola's price patterns will revert.
Auto-correlation | 0.25 |
Poor predictability
The Coca Cola has poor predictability. Overlapping area represents the amount of predictability between Coca Cola time series from 1st of August 2024 to 16th of August 2024 and 16th of August 2024 to 31st of August 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Coca Cola price movement. The serial correlation of 0.25 indicates that over 25.0% of current Coca Cola price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.25 | |
| Spearman Rank Test | 0.34 | |
| Residual Average | 0.0 | |
| Price Variance | 1.73 |
Coca Cola lagged returns against current returns
Autocorrelation, which is Coca Cola stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Coca Cola's stock expected returns. We can calculate the autocorrelation of Coca Cola returns to help us make a trade decision. For example, suppose you find that Coca Cola has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Coca Cola regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Coca Cola stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Coca Cola stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Coca Cola stock over time.
Current vs Lagged Prices |
| Timeline |
Coca Cola Lagged Returns
When evaluating Coca Cola's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Coca Cola stock have on its future price. Coca Cola autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Coca Cola autocorrelation shows the relationship between Coca Cola stock current value and its past values and can show if there is a momentum factor associated with investing in The Coca Cola.
Regressed Prices |
| Timeline |
Pair Trading with Coca Cola
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Coca Cola position performs unexpectedly, the other equity 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 appreciate offsetting losses from the drop in the long position's value.Moving together with Coca Stock
Moving against Coca Stock
| 0.87 | CELH | Celsius Holdings | PairCorr |
| 0.83 | EL | Estee Lauder Companies | PairCorr |
| 0.83 | GO | Grocery Outlet Holding | PairCorr |
| 0.77 | COCO | Vita Coco | PairCorr |
| 0.75 | IH | Ihuman Inc | PairCorr |
The ability to find closely correlated positions to Coca Cola could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Coca Cola when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Coca Cola - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling The Coca Cola to buy it.
The correlation of Coca Cola is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Coca Cola moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Coca Cola moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Coca Cola can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Information and Resources on Investing in Coca Stock
When determining whether Coca Cola offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Coca Cola's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of The Coca Cola Stock. Outlined below are crucial reports that will aid in making a well-informed decision on The Coca Cola Stock:Check out Coca Cola Correlation, Coca Cola Volatility and Coca Cola Alpha and Beta module to complement your research on Coca Cola. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Coca Cola technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.