Correlation Between Celebrus Technologies and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Celebrus Technologies and Coca Cola 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 Celebrus Technologies and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celebrus Technologies plc and Coca Cola Co, you can compare the effects of market volatilities on Celebrus Technologies 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 Celebrus Technologies with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebrus Technologies and Coca Cola.
Diversification Opportunities for Celebrus Technologies and Coca Cola
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Celebrus and Coca is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Celebrus Technologies plc and Coca Cola Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Celebrus Technologies 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 Celebrus Technologies plc 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 has no effect on the direction of Celebrus Technologies i.e., Celebrus Technologies and Coca Cola go up and down completely randomly.
Pair Corralation between Celebrus Technologies and Coca Cola
Assuming the 90 days trading horizon Celebrus Technologies is expected to generate 2.69 times less return on investment than Coca Cola. In addition to that, Celebrus Technologies is 1.18 times more volatile than Coca Cola Co. It trades about 0.11 of its total potential returns per unit of risk. Coca Cola Co is currently generating about 0.35 per unit of volatility. If you would invest 6,345 in Coca Cola Co on November 29, 2024 and sell it today you would earn a total of 730.00 from holding Coca Cola Co or generate 11.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celebrus Technologies plc vs. Coca Cola Co
Performance |
| Timeline |
| Celebrus Technologies plc |
| Coca Cola |
Celebrus Technologies and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celebrus Technologies and Coca Cola
The main advantage of trading using opposite Celebrus Technologies and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebrus Technologies 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.| Celebrus Technologies vs. Waste Management | Celebrus Technologies vs. SMA Solar Technology | Celebrus Technologies vs. China Pacific Insurance | Celebrus Technologies vs. Take Two Interactive Software |
| Coca Cola vs. SMA Solar Technology | Coca Cola vs. Vitec Software Group | Coca Cola vs. Aptitude Software Group | Coca Cola vs. Alfa Financial Software |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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