Correlation Between AG Anadolu and Coca Cola
Can any of the company-specific risk be diversified away by investing in both AG Anadolu 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 AG Anadolu and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AG Anadolu Group and Coca Cola Icecek AS, you can compare the effects of market volatilities on AG Anadolu 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 AG Anadolu with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of AG Anadolu and Coca Cola.
Diversification Opportunities for AG Anadolu and Coca Cola
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AGHOL and Coca is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding AG Anadolu Group and Coca Cola Icecek AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Icecek and AG Anadolu 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 AG Anadolu Group 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 Icecek has no effect on the direction of AG Anadolu i.e., AG Anadolu and Coca Cola go up and down completely randomly.
Pair Corralation between AG Anadolu and Coca Cola
Assuming the 90 days trading horizon AG Anadolu Group is expected to generate 0.99 times more return on investment than Coca Cola. However, AG Anadolu Group is 1.01 times less risky than Coca Cola. It trades about 0.27 of its potential returns per unit of risk. Coca Cola Icecek AS is currently generating about 0.18 per unit of risk. If you would invest 28,750 in AG Anadolu Group on August 30, 2024 and sell it today you would earn a total of 4,775 from holding AG Anadolu Group or generate 16.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AG Anadolu Group vs. Coca Cola Icecek AS
Performance |
| Timeline |
| AG Anadolu Group |
| Coca Cola Icecek |
AG Anadolu and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AG Anadolu and Coca Cola
The main advantage of trading using opposite AG Anadolu and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AG Anadolu 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.| AG Anadolu vs. Gentas Genel Metal | AG Anadolu vs. Politeknik Metal Sanayi | AG Anadolu vs. Datagate Bilgisayar Malzemeleri | AG Anadolu vs. Creditwest Faktoring AS |
| Coca Cola vs. Anadolu Efes Biracilik | Coca Cola vs. BIM Birlesik Magazalar | Coca Cola vs. TAV Havalimanlari Holding | Coca Cola vs. Turkiye Sise ve |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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