Correlation Between Coca Cola and Ingevec
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By analyzing existing cross correlation between Coca Cola Embonor SA and Ingevec, you can compare the effects of market volatilities on Coca Cola and Ingevec 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 Ingevec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Ingevec.
Diversification Opportunities for Coca Cola and Ingevec
Significant diversification
The 3 months correlation between Coca and Ingevec is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola Embonor SA and Ingevec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingevec 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 Embonor SA are associated (or correlated) with Ingevec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingevec has no effect on the direction of Coca Cola i.e., Coca Cola and Ingevec go up and down completely randomly.
Pair Corralation between Coca Cola and Ingevec
Assuming the 90 days trading horizon Coca Cola Embonor SA is expected to generate 1.55 times more return on investment than Ingevec. However, Coca Cola is 1.55 times more volatile than Ingevec. It trades about 0.06 of its potential returns per unit of risk. Ingevec is currently generating about -0.11 per unit of risk. If you would invest 120,000 in Coca Cola Embonor SA on September 19, 2024 and sell it today you would earn a total of 1,910 from holding Coca Cola Embonor SA or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
Coca Cola Embonor SA vs. Ingevec
Performance |
| Timeline |
| Coca Cola Embonor |
| Ingevec |
Coca Cola and Ingevec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Ingevec
The main advantage of trading using opposite Coca Cola and Ingevec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Ingevec 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 Ingevec will offset losses from the drop in Ingevec's long position.| Coca Cola vs. Administradora Americana de | Coca Cola vs. Energia Latina SA | Coca Cola vs. Salfacorp | Coca Cola vs. Vina Concha To |
| Ingevec vs. Aguas Andinas SA | Ingevec vs. Parq Arauco | Ingevec vs. Enel Generacin Chile | Ingevec vs. Sociedad Matriz SAAM |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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