Correlation Between Ihuman and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Ihuman 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 Ihuman and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Coca Cola European Partners, you can compare the effects of market volatilities on Ihuman 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 Ihuman with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Coca Cola.
Diversification Opportunities for Ihuman and Coca Cola
Poor diversification
The 3 months correlation between Ihuman and Coca is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc 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 Ihuman 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 Ihuman Inc 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 European has no effect on the direction of Ihuman i.e., Ihuman and Coca Cola go up and down completely randomly.
Pair Corralation between Ihuman and Coca Cola
Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 1.62 times more return on investment than Coca Cola. However, Ihuman is 1.62 times more volatile than Coca Cola European Partners. It trades about 0.34 of its potential returns per unit of risk. Coca Cola European Partners is currently generating about 0.39 per unit of risk. If you would invest 165.00 in Ihuman Inc on November 28, 2024 and sell it today you would earn a total of 22.00 from holding Ihuman Inc or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ihuman Inc vs. Coca Cola European Partners
Performance |
| Timeline |
| Ihuman Inc |
| Coca Cola European |
Ihuman and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Coca Cola
The main advantage of trading using opposite Ihuman and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
| Coca Cola vs. Vita Coco | Coca Cola vs. Coca Cola Femsa SAB | Coca Cola vs. Embotelladora Andina SA | Coca Cola 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| CEOs Directory Screen CEOs from public companies around the world |