Correlation Between Coca Cola and Cenergy Holdings
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Cenergy Holdings 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 Cenergy Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coca Cola HBC AG and Cenergy Holdings SA, you can compare the effects of market volatilities on Coca Cola and Cenergy Holdings 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 Cenergy Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Cenergy Holdings.
Diversification Opportunities for Coca Cola and Cenergy Holdings
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coca and Cenergy is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola HBC AG and Cenergy Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cenergy Holdings 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 HBC AG are associated (or correlated) with Cenergy Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cenergy Holdings has no effect on the direction of Coca Cola i.e., Coca Cola and Cenergy Holdings go up and down completely randomly.
Pair Corralation between Coca Cola and Cenergy Holdings
Assuming the 90 days trading horizon Coca Cola is expected to generate 1.84 times less return on investment than Cenergy Holdings. But when comparing it to its historical volatility, Coca Cola HBC AG is 1.55 times less risky than Cenergy Holdings. It trades about 0.09 of its potential returns per unit of risk. Cenergy Holdings SA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 387.00 in Cenergy Holdings SA on November 19, 2024 and sell it today you would earn a total of 559.00 from holding Cenergy Holdings SA or generate 144.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coca Cola HBC AG vs. Cenergy Holdings SA
Performance |
| Timeline |
| Coca Cola HBC |
| Cenergy Holdings |
Coca Cola and Cenergy Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Cenergy Holdings
The main advantage of trading using opposite Coca Cola and Cenergy Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Cenergy Holdings 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 Cenergy Holdings will offset losses from the drop in Cenergy Holdings' long position.| Coca Cola vs. Elton International Trading | Coca Cola vs. CPI Computer Peripherals | Coca Cola vs. Logismos Information Systems | Coca Cola vs. National Bank of |
| Cenergy Holdings vs. General Commercial Industrial | Cenergy Holdings vs. Technical Olympic SA | Cenergy Holdings vs. Sidma SA Steel | Cenergy Holdings vs. Interlife General Insurance |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |