Correlation Between DAX Index and Coca-Cola European
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Coca Cola European Partners, you can compare the effects of market volatilities on DAX Index and Coca-Cola European 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 DAX Index with a short position of Coca-Cola European. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Coca-Cola European.
Diversification Opportunities for DAX Index and Coca-Cola European
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between DAX and Coca-Cola is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Coca Cola European Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola European and DAX Index 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 DAX Index are associated (or correlated) with Coca-Cola European. 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 European has no effect on the direction of DAX Index i.e., DAX Index and Coca-Cola European go up and down completely randomly.
Pair Corralation between DAX Index and Coca-Cola European
Assuming the 90 days trading horizon DAX Index is expected to generate 1.25 times less return on investment than Coca-Cola European. But when comparing it to its historical volatility, DAX Index is 1.84 times less risky than Coca-Cola European. It trades about 0.09 of its potential returns per unit of risk. Coca Cola European Partners is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,751 in Coca Cola European Partners on September 5, 2024 and sell it today you would earn a total of 2,439 from holding Coca Cola European Partners or generate 51.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
DAX Index vs. Coca Cola European Partners
Performance |
| Timeline |
DAX Index and Coca-Cola European Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Coca Cola European Partners
Pair trading matchups for Coca-Cola European
Pair Trading with DAX Index and Coca-Cola European
The main advantage of trading using opposite DAX Index and Coca-Cola European positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index position performs unexpectedly, Coca-Cola European 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 European will offset losses from the drop in Coca-Cola European's long position.| DAX Index vs. Hochschild Mining plc | DAX Index vs. Ming Le Sports | DAX Index vs. PLAYSTUDIOS A DL 0001 | DAX Index vs. USWE SPORTS AB |
| Coca-Cola European vs. PepsiCo | Coca-Cola European vs. COCA A HBC | Coca-Cola European vs. National Beverage Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |