Correlation Between Astrana Health and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Astrana Health 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 Astrana Health and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astrana Health and The Coca Cola, you can compare the effects of market volatilities on Astrana Health 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 Astrana Health with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astrana Health and Coca Cola.
Diversification Opportunities for Astrana Health and Coca Cola
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Astrana and Coca is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Astrana Health and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Astrana Health 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 Astrana Health 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 Astrana Health i.e., Astrana Health and Coca Cola go up and down completely randomly.
Pair Corralation between Astrana Health and Coca Cola
Given the investment horizon of 90 days Astrana Health is expected to under-perform the Coca Cola. In addition to that, Astrana Health is 6.09 times more volatile than The Coca Cola. It trades about -0.14 of its total potential returns per unit of risk. The Coca Cola is currently generating about -0.08 per unit of volatility. If you would invest 6,462 in The Coca Cola on September 4, 2024 and sell it today you would lose (97.00) from holding The Coca Cola or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Astrana Health vs. The Coca Cola
Performance |
| Timeline |
| Astrana Health |
| Coca Cola |
Astrana Health and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astrana Health and Coca Cola
The main advantage of trading using opposite Astrana Health and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astrana Health 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.| Astrana Health vs. Turning Point Brands | Astrana Health vs. Altria Group | Astrana Health vs. Willamette Valley Vineyards | Astrana Health vs. Accel Entertainment |
| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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