Correlation Between Air Transport and Coca Cola
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By analyzing existing cross correlation between Air Transport Services and The Coca Cola, you can compare the effects of market volatilities on Air Transport 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 Air Transport with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and Coca Cola.
Diversification Opportunities for Air Transport and Coca Cola
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Air and Coca is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Air Transport 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 Air Transport Services 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 Air Transport i.e., Air Transport and Coca Cola go up and down completely randomly.
Pair Corralation between Air Transport and Coca Cola
Assuming the 90 days horizon Air Transport Services is expected to generate 0.49 times more return on investment than Coca Cola. However, Air Transport Services is 2.02 times less risky than Coca Cola. It trades about 0.1 of its potential returns per unit of risk. The Coca Cola is currently generating about -0.09 per unit of risk. If you would invest 2,100 in Air Transport Services on October 29, 2024 and sell it today you would earn a total of 20.00 from holding Air Transport Services or generate 0.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Transport Services vs. The Coca Cola
Performance |
| Timeline |
| Air Transport Services |
| Coca Cola |
Air Transport and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Transport and Coca Cola
The main advantage of trading using opposite Air Transport and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport 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.| Air Transport vs. Airports of Thailand | Air Transport vs. Airports of Thailand | Air Transport vs. Aena SME SA | Air Transport vs. AENA SME UNSPADR110 |
| Coca Cola vs. TYSON FOODS A | Coca Cola vs. Chiba Bank | Coca Cola vs. S E BANKEN A | Coca Cola vs. Lery Seafood Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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