Correlation Between Fondo Mutuo and Coca Cola
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By analyzing existing cross correlation between Fondo Mutuo ETF and Coca Cola Embonor SA, you can compare the effects of market volatilities on Fondo Mutuo and Coca Cola 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 Fondo Mutuo with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fondo Mutuo and Coca Cola.
Diversification Opportunities for Fondo Mutuo and Coca Cola
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fondo and Coca is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Fondo Mutuo ETF and Coca Cola Embonor SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Embonor and Fondo Mutuo 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 Fondo Mutuo ETF are associated (or correlated) with Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola Embonor has no effect on the direction of Fondo Mutuo i.e., Fondo Mutuo and Coca Cola go up and down completely randomly.
Pair Corralation between Fondo Mutuo and Coca Cola
Assuming the 90 days trading horizon Fondo Mutuo is expected to generate 1.13 times less return on investment than Coca Cola. But when comparing it to its historical volatility, Fondo Mutuo ETF is 2.54 times less risky than Coca Cola. It trades about 0.33 of its potential returns per unit of risk. Coca Cola Embonor SA is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 120,140 in Coca Cola Embonor SA on November 28, 2024 and sell it today you would earn a total of 6,070 from holding Coca Cola Embonor SA or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fondo Mutuo ETF vs. Coca Cola Embonor SA
Performance |
| Timeline |
| Fondo Mutuo ETF |
| Coca Cola Embonor |
Fondo Mutuo and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fondo Mutuo and Coca Cola
The main advantage of trading using opposite Fondo Mutuo and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fondo Mutuo position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Fondo Mutuo vs. Salfacorp | Fondo Mutuo vs. Multiexport Foods SA | Fondo Mutuo vs. Sociedad Matriz SAAM | Fondo Mutuo vs. Empresas CMPC |
| Coca Cola vs. Coca Cola Embonor SA | Coca Cola vs. Aguas Andinas SA | Coca Cola vs. Parq Arauco | Coca Cola vs. Enel Generacin Chile |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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