Correlation Between Coca Cola and Koc Holding
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Koc Holding 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 Koc Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coca Cola Icecek AS and Koc Holding AS, you can compare the effects of market volatilities on Coca Cola and Koc Holding 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 Koc Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Koc Holding.
Diversification Opportunities for Coca Cola and Koc Holding
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coca and Koc is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola Icecek AS and Koc Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koc Holding AS 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 Icecek AS are associated (or correlated) with Koc Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koc Holding AS has no effect on the direction of Coca Cola i.e., Coca Cola and Koc Holding go up and down completely randomly.
Pair Corralation between Coca Cola and Koc Holding
Assuming the 90 days trading horizon Coca Cola Icecek AS is expected to generate 16.26 times more return on investment than Koc Holding. However, Coca Cola is 16.26 times more volatile than Koc Holding AS. It trades about 0.05 of its potential returns per unit of risk. Koc Holding AS is currently generating about 0.1 per unit of risk. If you would invest 1,669 in Coca Cola Icecek AS on August 28, 2024 and sell it today you would earn a total of 3,531 from holding Coca Cola Icecek AS or generate 211.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coca Cola Icecek AS vs. Koc Holding AS
Performance |
| Timeline |
| Coca Cola Icecek |
| Koc Holding AS |
Coca Cola and Koc Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Koc Holding
The main advantage of trading using opposite Coca Cola and Koc Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Koc Holding 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 Koc Holding will offset losses from the drop in Koc Holding's long position.| Coca Cola vs. Is Yatirim Ortakligi | Coca Cola vs. Creditwest Faktoring AS | Coca Cola vs. Turk Telekomunikasyon AS | Coca Cola vs. Aygaz AS |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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