Correlation Between Coca Cola and Sherborne Investors
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Sherborne Investors 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 Sherborne Investors 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 Sherborne Investors Guernsey, you can compare the effects of market volatilities on Coca Cola and Sherborne Investors 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 Sherborne Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Sherborne Investors.
Diversification Opportunities for Coca Cola and Sherborne Investors
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coca and Sherborne is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola Co and Sherborne Investors Guernsey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sherborne Investors 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 Sherborne Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sherborne Investors has no effect on the direction of Coca Cola i.e., Coca Cola and Sherborne Investors go up and down completely randomly.
Pair Corralation between Coca Cola and Sherborne Investors
If you would invest 5,825 in Coca Cola Co on November 3, 2024 and sell it today you would earn a total of 480.00 from holding Coca Cola Co or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Coca Cola Co vs. Sherborne Investors Guernsey
Performance |
| Timeline |
| Coca Cola |
| Sherborne Investors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and Sherborne Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Sherborne Investors
The main advantage of trading using opposite Coca Cola and Sherborne Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Sherborne Investors 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 Sherborne Investors will offset losses from the drop in Sherborne Investors' long position.| Coca Cola vs. Gruppo MutuiOnline SpA | Coca Cola vs. Delta Air Lines | Coca Cola vs. Porvair plc | Coca Cola vs. Metro Bank PLC |
| Sherborne Investors vs. Dairy Farm International | Sherborne Investors vs. The Mercantile Investment | Sherborne Investors vs. Premier Foods PLC | Sherborne Investors vs. Monks Investment Trust |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |