Correlation Between Celebi Hava and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Celebi Hava 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 Celebi Hava and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celebi Hava Servisi and Coca Cola Icecek AS, you can compare the effects of market volatilities on Celebi Hava 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 Celebi Hava with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebi Hava and Coca Cola.
Diversification Opportunities for Celebi Hava and Coca Cola
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Celebi and Coca is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Celebi Hava Servisi and Coca Cola Icecek AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Icecek and Celebi Hava 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 Celebi Hava Servisi 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 Icecek has no effect on the direction of Celebi Hava i.e., Celebi Hava and Coca Cola go up and down completely randomly.
Pair Corralation between Celebi Hava and Coca Cola
Assuming the 90 days trading horizon Celebi Hava Servisi is expected to generate 0.95 times more return on investment than Coca Cola. However, Celebi Hava Servisi is 1.05 times less risky than Coca Cola. It trades about 0.14 of its potential returns per unit of risk. Coca Cola Icecek AS is currently generating about -0.08 per unit of risk. If you would invest 183,000 in Celebi Hava Servisi on August 28, 2024 and sell it today you would earn a total of 39,500 from holding Celebi Hava Servisi or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celebi Hava Servisi vs. Coca Cola Icecek AS
Performance |
| Timeline |
| Celebi Hava Servisi |
| Coca Cola Icecek |
Celebi Hava and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celebi Hava and Coca Cola
The main advantage of trading using opposite Celebi Hava and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebi Hava 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.| Celebi Hava vs. QNB Finans Finansal | Celebi Hava vs. Pamel Yenilenebilir Elektrik | Celebi Hava vs. Brisa Bridgestone Sabanci | Celebi Hava vs. Dogus Gayrimenkul Yatirim |
| Coca Cola vs. Is Yatirim Ortakligi | Coca Cola vs. Creditwest Faktoring AS | Coca Cola vs. Turk Telekomunikasyon AS | Coca Cola vs. Aygaz AS |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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