Correlation Between Coca Cola and VIRGIN WINES
Can any of the company-specific risk be diversified away by investing in both Coca Cola and VIRGIN WINES 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 VIRGIN WINES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coca Cola HBC and VIRGIN WINES UK, you can compare the effects of market volatilities on Coca Cola and VIRGIN WINES 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 VIRGIN WINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and VIRGIN WINES.
Diversification Opportunities for Coca Cola and VIRGIN WINES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and VIRGIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola HBC and VIRGIN WINES UK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIRGIN WINES UK 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 HBC are associated (or correlated) with VIRGIN WINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIRGIN WINES UK has no effect on the direction of Coca Cola i.e., Coca Cola and VIRGIN WINES go up and down completely randomly.
Pair Corralation between Coca Cola and VIRGIN WINES
If you would invest 2,625 in Coca Cola HBC on August 31, 2024 and sell it today you would earn a total of 781.00 from holding Coca Cola HBC or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.74% |
| Values | Daily Returns |
Coca Cola HBC vs. VIRGIN WINES UK
Performance |
| Timeline |
| Coca Cola HBC |
| VIRGIN WINES UK |
Coca Cola and VIRGIN WINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and VIRGIN WINES
The main advantage of trading using opposite Coca Cola and VIRGIN WINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, VIRGIN WINES 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 VIRGIN WINES will offset losses from the drop in VIRGIN WINES's long position.| Coca Cola vs. Western Copper and | Coca Cola vs. SERI INDUSTRIAL EO | Coca Cola vs. Jacquet Metal Service | Coca Cola vs. Tencent Music Entertainment |
| VIRGIN WINES vs. American Eagle Outfitters | VIRGIN WINES vs. Games Workshop Group | VIRGIN WINES vs. GAMING FAC SA | VIRGIN WINES vs. ULTRA CLEAN HLDGS |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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