Correlation Between Nomad Foods and Coca Cola
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By analyzing existing cross correlation between Nomad Foods and The Coca Cola, you can compare the effects of market volatilities on Nomad Foods 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 Nomad Foods with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nomad Foods and Coca Cola.
Diversification Opportunities for Nomad Foods and Coca Cola
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nomad and Coca is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Nomad Foods and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Nomad Foods 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 Nomad Foods 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 Nomad Foods i.e., Nomad Foods and Coca Cola go up and down completely randomly.
Pair Corralation between Nomad Foods and Coca Cola
Assuming the 90 days trading horizon Nomad Foods is expected to under-perform the Coca Cola. In addition to that, Nomad Foods is 1.45 times more volatile than The Coca Cola. It trades about -0.28 of its total potential returns per unit of risk. The Coca Cola is currently generating about -0.03 per unit of volatility. If you would invest 6,028 in The Coca Cola on October 17, 2024 and sell it today you would lose (34.00) from holding The Coca Cola or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nomad Foods vs. The Coca Cola
Performance |
| Timeline |
| Nomad Foods |
| Coca Cola |
Nomad Foods and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nomad Foods and Coca Cola
The main advantage of trading using opposite Nomad Foods and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nomad Foods 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.| Nomad Foods vs. Shenandoah Telecommunications | Nomad Foods vs. CENTURIA OFFICE REIT | Nomad Foods vs. KENEDIX OFFICE INV | Nomad Foods vs. ecotel communication ag |
| Coca Cola vs. Lery Seafood Group | Coca Cola vs. China BlueChemical | Coca Cola vs. Nomad Foods | Coca Cola vs. SILICON LABORATOR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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