Correlation Between Coca Cola and S-E BANKEN
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By analyzing existing cross correlation between The Coca Cola and S E BANKEN A , you can compare the effects of market volatilities on Coca Cola and S-E BANKEN 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 S-E BANKEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and S-E BANKEN.
Diversification Opportunities for Coca Cola and S-E BANKEN
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coca and S-E is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and S E BANKEN A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S E BANKEN 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 The Coca Cola are associated (or correlated) with S-E BANKEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S E BANKEN has no effect on the direction of Coca Cola i.e., Coca Cola and S-E BANKEN go up and down completely randomly.
Pair Corralation between Coca Cola and S-E BANKEN
Assuming the 90 days trading horizon The Coca Cola is expected to generate 0.51 times more return on investment than S-E BANKEN. However, The Coca Cola is 1.97 times less risky than S-E BANKEN. It trades about 0.28 of its potential returns per unit of risk. S E BANKEN A is currently generating about -0.04 per unit of risk. If you would invest 5,883 in The Coca Cola on November 6, 2024 and sell it today you would earn a total of 279.00 from holding The Coca Cola or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. S E BANKEN A
Performance |
| Timeline |
| Coca Cola |
| S E BANKEN |
Coca Cola and S-E BANKEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and S-E BANKEN
The main advantage of trading using opposite Coca Cola and S-E BANKEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, S-E BANKEN 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 S-E BANKEN will offset losses from the drop in S-E BANKEN's long position.| Coca Cola vs. STMicroelectronics NV | Coca Cola vs. MARKET VECTR RETAIL | Coca Cola vs. SPARTAN STORES | Coca Cola vs. GOME Retail Holdings |
| S-E BANKEN vs. DFS Furniture PLC | S-E BANKEN vs. The Home Depot | S-E BANKEN vs. NORTHEAST UTILITIES | S-E BANKEN vs. Cognizant Technology Solutions |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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