Correlation Between Hyster Yale and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Hyster Yale 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 Hyster Yale and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and Coca Cola HBC, you can compare the effects of market volatilities on Hyster Yale 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 Hyster Yale with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Coca Cola.
Diversification Opportunities for Hyster Yale and Coca Cola
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyster and Coca is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Coca Cola HBC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola HBC and Hyster Yale 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 Hyster Yale Materials Handling 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 Hyster Yale i.e., Hyster Yale and Coca Cola go up and down completely randomly.
Pair Corralation between Hyster Yale and Coca Cola
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to generate 1.22 times more return on investment than Coca Cola. However, Hyster Yale is 1.22 times more volatile than Coca Cola HBC. It trades about 0.1 of its potential returns per unit of risk. Coca Cola HBC is currently generating about -0.03 per unit of risk. If you would invest 4,947 in Hyster Yale Materials Handling on September 13, 2024 and sell it today you would earn a total of 203.00 from holding Hyster Yale Materials Handling or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Coca Cola HBC
Performance |
| Timeline |
| Hyster Yale Materials |
| Coca Cola HBC |
Hyster Yale and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Coca Cola
The main advantage of trading using opposite Hyster Yale and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale 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.| Hyster Yale vs. OURGAME INTHOLDL 00005 | Hyster Yale vs. Media and Games | Hyster Yale vs. American Eagle Outfitters | Hyster Yale vs. GigaMedia |
| Coca Cola vs. ULTRA CLEAN HLDGS | Coca Cola vs. PREMIER FOODS | Coca Cola vs. NISSIN FOODS HLDGS | Coca Cola vs. Cleanaway Waste Management |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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