Correlation Between Coca Cola and Origin Agritech
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Origin Agritech 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 Origin Agritech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coca Cola FEMSA SAB and Origin Agritech, you can compare the effects of market volatilities on Coca Cola and Origin Agritech 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 Origin Agritech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Origin Agritech.
Diversification Opportunities for Coca Cola and Origin Agritech
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Origin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola FEMSA SAB and Origin Agritech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Agritech 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 FEMSA SAB are associated (or correlated) with Origin Agritech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Agritech has no effect on the direction of Coca Cola i.e., Coca Cola and Origin Agritech go up and down completely randomly.
Pair Corralation between Coca Cola and Origin Agritech
If you would invest 706.00 in Coca Cola FEMSA SAB on January 12, 2025 and sell it today you would earn a total of 149.00 from holding Coca Cola FEMSA SAB or generate 21.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Coca Cola FEMSA SAB vs. Origin Agritech
Performance |
| Timeline |
| Coca Cola FEMSA |
| Origin Agritech |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Coca Cola and Origin Agritech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Origin Agritech
The main advantage of trading using opposite Coca Cola and Origin Agritech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Origin Agritech 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 Origin Agritech will offset losses from the drop in Origin Agritech's long position.| Coca Cola vs. RESMINING UNSPADR10 | Coca Cola vs. INTERCONT HOTELS | Coca Cola vs. Eurasia Mining Plc | Coca Cola vs. Globex Mining Enterprises |
| Origin Agritech vs. DICKS Sporting Goods | Origin Agritech vs. SOEDER SPORTFISKE AB | Origin Agritech vs. ITALIAN WINE BRANDS | Origin Agritech vs. Columbia Sportswear |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |