Correlation Between Fomento Econmico and Coca Cola
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By analyzing existing cross correlation between Fomento Econmico Mexicano and Coca Cola FEMSA SAB, you can compare the effects of market volatilities on Fomento Econmico 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 Fomento Econmico with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fomento Econmico and Coca Cola.
Diversification Opportunities for Fomento Econmico and Coca Cola
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fomento and Coca is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fomento Econmico Mexicano and Coca Cola FEMSA SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola FEMSA and Fomento Econmico 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 Fomento Econmico Mexicano 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 FEMSA has no effect on the direction of Fomento Econmico i.e., Fomento Econmico and Coca Cola go up and down completely randomly.
Pair Corralation between Fomento Econmico and Coca Cola
Assuming the 90 days trading horizon Fomento Econmico Mexicano is expected to under-perform the Coca Cola. In addition to that, Fomento Econmico is 1.15 times more volatile than Coca Cola FEMSA SAB. It trades about -0.29 of its total potential returns per unit of risk. Coca Cola FEMSA SAB is currently generating about -0.11 per unit of volatility. If you would invest 16,558 in Coca Cola FEMSA SAB on September 1, 2024 and sell it today you would lose (452.00) from holding Coca Cola FEMSA SAB or give up 2.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Fomento Econmico Mexicano vs. Coca Cola FEMSA SAB
Performance |
| Timeline |
| Fomento Econmico Mexicano |
| Coca Cola FEMSA |
Fomento Econmico and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fomento Econmico and Coca Cola
The main advantage of trading using opposite Fomento Econmico and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fomento Econmico 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.| Fomento Econmico vs. Grupo Financiero Banorte | Fomento Econmico vs. Alfa SAB de | Fomento Econmico vs. Grupo Mxico SAB | Fomento Econmico vs. CEMEX SAB de |
| Coca Cola vs. Arca Continental SAB | Coca Cola vs. Wal Mart de Mxico | Coca Cola vs. Fomento Econmico Mexicano | Coca Cola vs. Orbia Advance |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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