Correlation Between Coty and 191216CE8
Specify exactly 2 symbols:
By analyzing existing cross correlation between Coty Inc and COCA A 29, you can compare the effects of market volatilities on Coty and 191216CE8 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 Coty with a short position of 191216CE8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coty and 191216CE8.
Diversification Opportunities for Coty and 191216CE8
Very weak diversification
The 3 months correlation between Coty and 191216CE8 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Coty Inc and COCA A 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A 29 and Coty 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 Coty Inc are associated (or correlated) with 191216CE8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A 29 has no effect on the direction of Coty i.e., Coty and 191216CE8 go up and down completely randomly.
Pair Corralation between Coty and 191216CE8
Given the investment horizon of 90 days Coty Inc is expected to generate 2.07 times more return on investment than 191216CE8. However, Coty is 2.07 times more volatile than COCA A 29. It trades about 0.04 of its potential returns per unit of risk. COCA A 29 is currently generating about -0.15 per unit of risk. If you would invest 738.00 in Coty Inc on September 14, 2024 and sell it today you would earn a total of 9.00 from holding Coty Inc or generate 1.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Coty Inc vs. COCA A 29
Performance |
Timeline |
Coty Inc |
COCA A 29 |
Coty and 191216CE8 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coty and 191216CE8
The main advantage of trading using opposite Coty and 191216CE8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coty position performs unexpectedly, 191216CE8 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 191216CE8 will offset losses from the drop in 191216CE8's long position.The idea behind Coty Inc and COCA A 29 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.191216CE8 vs. Pure Cycle | 191216CE8 vs. United Utilities Group | 191216CE8 vs. Vistra Energy Corp | 191216CE8 vs. Coty Inc |
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.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |