Correlation Between Coca Cola and Kristal Kola
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Kristal Kola 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 Kristal Kola 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 Kristal Kola ve, you can compare the effects of market volatilities on Coca Cola and Kristal Kola 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 Kristal Kola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Kristal Kola.
Diversification Opportunities for Coca Cola and Kristal Kola
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coca and Kristal is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola Icecek AS and Kristal Kola ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kristal Kola ve 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 Kristal Kola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kristal Kola ve has no effect on the direction of Coca Cola i.e., Coca Cola and Kristal Kola go up and down completely randomly.
Pair Corralation between Coca Cola and Kristal Kola
Assuming the 90 days trading horizon Coca Cola Icecek AS is expected to under-perform the Kristal Kola. But the stock apears to be less risky and, when comparing its historical volatility, Coca Cola Icecek AS is 1.08 times less risky than Kristal Kola. The stock trades about -0.07 of its potential returns per unit of risk. The Kristal Kola ve is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 784.00 in Kristal Kola ve on November 28, 2024 and sell it today you would lose (230.00) from holding Kristal Kola ve or give up 29.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.46% |
| Values | Daily Returns |
Coca Cola Icecek AS vs. Kristal Kola ve
Performance |
| Timeline |
| Coca Cola Icecek |
| Kristal Kola ve |
Coca Cola and Kristal Kola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Kristal Kola
The main advantage of trading using opposite Coca Cola and Kristal Kola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Kristal Kola 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 Kristal Kola will offset losses from the drop in Kristal Kola's long position.| Coca Cola vs. Anadolu Efes Biracilik | Coca Cola vs. BIM Birlesik Magazalar | Coca Cola vs. TAV Havalimanlari Holding | Coca Cola vs. Turkiye Sise ve |
| Kristal Kola vs. Sekerbank TAS | Kristal Kola vs. Trabzonspor Sportif Yatirim | Kristal Kola vs. Qnb Finansbank AS | Kristal Kola vs. E Data Teknoloji Pazarlama |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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