Correlation Between Coca Cola and Samsung Electronics
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Samsung Electronics 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 Samsung Electronics 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 Samsung Electronics Co, you can compare the effects of market volatilities on Coca Cola and Samsung Electronics 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 Samsung Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Samsung Electronics.
Diversification Opportunities for Coca Cola and Samsung Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Samsung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola HBC and Samsung Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samsung Electronics 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 Samsung Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samsung Electronics has no effect on the direction of Coca Cola i.e., Coca Cola and Samsung Electronics go up and down completely randomly.
Pair Corralation between Coca Cola and Samsung Electronics
If you would invest 0.00 in Coca Cola HBC on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Coca Cola HBC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.2% |
| Values | Daily Returns |
Coca Cola HBC vs. Samsung Electronics Co
Performance |
| Timeline |
| Coca Cola HBC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Samsung Electronics |
Coca Cola and Samsung Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Samsung Electronics
The main advantage of trading using opposite Coca Cola and Samsung Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Samsung Electronics 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 Samsung Electronics will offset losses from the drop in Samsung Electronics' long position.| Coca Cola vs. Diversified Energy | Coca Cola vs. Tatton Asset Management | Coca Cola vs. FC Investment Trust | Coca Cola vs. Schroders Investment Trusts |
| Samsung Electronics vs. Ashtead Technology Holdings | Samsung Electronics vs. Invesco Physical Silver | Samsung Electronics vs. Pfeiffer Vacuum Technology | Samsung Electronics vs. Caledonia Mining |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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