Correlation Between Coca Cola and Empresa Nacional
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By analyzing existing cross correlation between Coca Cola Embonor SA and Empresa Nacional de, you can compare the effects of market volatilities on Coca Cola and Empresa Nacional 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 Empresa Nacional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Empresa Nacional.
Diversification Opportunities for Coca Cola and Empresa Nacional
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Coca and Empresa is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola Embonor SA and Empresa Nacional de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Empresa Nacional 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 Empresa Nacional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Empresa Nacional has no effect on the direction of Coca Cola i.e., Coca Cola and Empresa Nacional go up and down completely randomly.
Pair Corralation between Coca Cola and Empresa Nacional
Assuming the 90 days trading horizon Coca Cola Embonor SA is expected to under-perform the Empresa Nacional. In addition to that, Coca Cola is 1.26 times more volatile than Empresa Nacional de. It trades about -0.28 of its total potential returns per unit of risk. Empresa Nacional de is currently generating about -0.24 per unit of volatility. If you would invest 317,760 in Empresa Nacional de on August 26, 2024 and sell it today you would lose (14,760) from holding Empresa Nacional de or give up 4.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coca Cola Embonor SA vs. Empresa Nacional de
Performance |
| Timeline |
| Coca Cola Embonor |
| Empresa Nacional |
Coca Cola and Empresa Nacional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Empresa Nacional
The main advantage of trading using opposite Coca Cola and Empresa Nacional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Empresa Nacional 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 Empresa Nacional will offset losses from the drop in Empresa Nacional's long position.| Coca Cola vs. Coca Cola Embonor SA | Coca Cola vs. Aguas Andinas SA | Coca Cola vs. Parq Arauco | Coca Cola vs. Enel Generacin Chile |
| Empresa Nacional vs. Cencosud | Empresa Nacional vs. Empresas Copec SA | Empresa Nacional vs. Falabella | Empresa Nacional vs. Empresas CMPC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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