Correlation Between Coca Cola and Mytilineos
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Mytilineos 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 Mytilineos 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 Mytilineos SA, you can compare the effects of market volatilities on Coca Cola and Mytilineos 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 Mytilineos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Mytilineos.
Diversification Opportunities for Coca Cola and Mytilineos
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coca and Mytilineos is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola HBC AG and Mytilineos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mytilineos SA 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 Mytilineos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mytilineos SA has no effect on the direction of Coca Cola i.e., Coca Cola and Mytilineos go up and down completely randomly.
Pair Corralation between Coca Cola and Mytilineos
Assuming the 90 days trading horizon Coca Cola HBC AG is expected to generate 0.84 times more return on investment than Mytilineos. However, Coca Cola HBC AG is 1.19 times less risky than Mytilineos. It trades about 0.1 of its potential returns per unit of risk. Mytilineos SA is currently generating about -0.03 per unit of risk. If you would invest 2,530 in Coca Cola HBC AG on August 24, 2024 and sell it today you would earn a total of 780.00 from holding Coca Cola HBC AG or generate 30.83% 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. Mytilineos SA
Performance |
| Timeline |
| Coca Cola HBC |
| Mytilineos SA |
Coca Cola and Mytilineos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Mytilineos
The main advantage of trading using opposite Coca Cola and Mytilineos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Mytilineos 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 Mytilineos will offset losses from the drop in Mytilineos' long position.| Coca Cola vs. National Bank of | Coca Cola vs. EL D Mouzakis | Coca Cola vs. Lampsa Hellenic Hotels | Coca Cola vs. N Leventeris SA |
| Mytilineos vs. Viohalco SA | Mytilineos vs. National Bank of | Mytilineos vs. Lampsa Hellenic Hotels | Mytilineos vs. N Leventeris SA |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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