Correlation Between Elvalhalcor Hellenic and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Elvalhalcor Hellenic 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 Elvalhalcor Hellenic and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elvalhalcor Hellenic Copper and Coca Cola HBC AG, you can compare the effects of market volatilities on Elvalhalcor Hellenic 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 Elvalhalcor Hellenic with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elvalhalcor Hellenic and Coca Cola.
Diversification Opportunities for Elvalhalcor Hellenic and Coca Cola
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Elvalhalcor and Coca is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Elvalhalcor Hellenic Copper and Coca Cola HBC AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola HBC and Elvalhalcor Hellenic 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 Elvalhalcor Hellenic Copper 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 HBC has no effect on the direction of Elvalhalcor Hellenic i.e., Elvalhalcor Hellenic and Coca Cola go up and down completely randomly.
Pair Corralation between Elvalhalcor Hellenic and Coca Cola
Assuming the 90 days trading horizon Elvalhalcor Hellenic is expected to generate 1.74 times less return on investment than Coca Cola. In addition to that, Elvalhalcor Hellenic is 1.69 times more volatile than Coca Cola HBC AG. It trades about 0.03 of its total potential returns per unit of risk. Coca Cola HBC AG is currently generating about 0.09 per unit of volatility. If you would invest 2,140 in Coca Cola HBC AG on September 3, 2024 and sell it today you would earn a total of 1,272 from holding Coca Cola HBC AG or generate 59.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Elvalhalcor Hellenic Copper vs. Coca Cola HBC AG
Performance |
| Timeline |
| Elvalhalcor Hellenic |
| Coca Cola HBC |
Elvalhalcor Hellenic and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elvalhalcor Hellenic and Coca Cola
The main advantage of trading using opposite Elvalhalcor Hellenic and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elvalhalcor Hellenic 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.| Elvalhalcor Hellenic vs. Mytilineos SA | Elvalhalcor Hellenic vs. Motor Oil Corinth | Elvalhalcor Hellenic vs. Hellenic Petroleum SA |
| Coca Cola vs. Elvalhalcor Hellenic Copper | Coca Cola vs. Technical Olympic SA | Coca Cola vs. Performance Technologies SA | Coca Cola vs. Profile Systems 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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