Correlation Between Coca Cola and Lery Seafood
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By analyzing existing cross correlation between The Coca Cola and Lery Seafood Group, you can compare the effects of market volatilities on Coca Cola and Lery Seafood 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 Lery Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Lery Seafood.
Diversification Opportunities for Coca Cola and Lery Seafood
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coca and Lery is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Lery Seafood Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lery Seafood Group 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 Lery Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lery Seafood Group has no effect on the direction of Coca Cola i.e., Coca Cola and Lery Seafood go up and down completely randomly.
Pair Corralation between Coca Cola and Lery Seafood
Assuming the 90 days trading horizon Coca Cola is expected to generate 14.92 times less return on investment than Lery Seafood. But when comparing it to its historical volatility, The Coca Cola is 9.88 times less risky than Lery Seafood. It trades about 0.04 of its potential returns per unit of risk. Lery Seafood Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 97.00 in Lery Seafood Group on October 16, 2024 and sell it today you would earn a total of 327.00 from holding Lery Seafood Group or generate 337.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Coca Cola vs. Lery Seafood Group
Performance |
Timeline |
Coca Cola |
Lery Seafood Group |
Coca Cola and Lery Seafood Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coca Cola and Lery Seafood
The main advantage of trading using opposite Coca Cola and Lery Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Lery Seafood 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 Lery Seafood will offset losses from the drop in Lery Seafood's long position.Coca Cola vs. Lery Seafood Group | Coca Cola vs. China BlueChemical | Coca Cola vs. Nomad Foods | Coca Cola vs. SILICON LABORATOR |
Lery Seafood vs. Mowi ASA | Lery Seafood vs. LEROY SEAFOOD GRUNSPADR | Lery Seafood vs. Yihai International Holding | Lery Seafood 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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