Correlation Between Advanced Medical and Coca Cola
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By analyzing existing cross correlation between Advanced Medical Solutions and The Coca Cola, you can compare the effects of market volatilities on Advanced Medical 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 Advanced Medical with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Medical and Coca Cola.
Diversification Opportunities for Advanced Medical and Coca Cola
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advanced and Coca is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Medical Solutions and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Advanced Medical 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 Advanced Medical Solutions 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 Advanced Medical i.e., Advanced Medical and Coca Cola go up and down completely randomly.
Pair Corralation between Advanced Medical and Coca Cola
Assuming the 90 days trading horizon Advanced Medical Solutions is expected to under-perform the Coca Cola. In addition to that, Advanced Medical is 3.47 times more volatile than The Coca Cola. It trades about -0.2 of its total potential returns per unit of risk. The Coca Cola is currently generating about -0.13 per unit of volatility. If you would invest 6,074 in The Coca Cola on October 13, 2024 and sell it today you would lose (128.00) from holding The Coca Cola or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Medical Solutions vs. The Coca Cola
Performance |
| Timeline |
| Advanced Medical Sol |
| Coca Cola |
Advanced Medical and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Medical and Coca Cola
The main advantage of trading using opposite Advanced Medical and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Medical 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.| Advanced Medical vs. Apple Inc | Advanced Medical vs. Apple Inc | Advanced Medical vs. Apple Inc | Advanced Medical vs. Apple Inc |
| Coca Cola vs. Harmony Gold Mining | Coca Cola vs. Monument Mining Limited | Coca Cola vs. Forsys Metals Corp | Coca Cola vs. Jacquet Metal Service |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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