Correlation Between Greene Concepts and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Greene Concepts 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 Greene Concepts and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greene Concepts and Coca Cola FEMSA SAB, you can compare the effects of market volatilities on Greene Concepts 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 Greene Concepts with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greene Concepts and Coca Cola.
Diversification Opportunities for Greene Concepts and Coca Cola
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greene and Coca is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Greene Concepts 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 Greene Concepts 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 Greene Concepts 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 Greene Concepts i.e., Greene Concepts and Coca Cola go up and down completely randomly.
Pair Corralation between Greene Concepts and Coca Cola
Given the investment horizon of 90 days Greene Concepts is expected to generate 2.14 times less return on investment than Coca Cola. In addition to that, Greene Concepts is 2.16 times more volatile than Coca Cola FEMSA SAB. It trades about 0.0 of its total potential returns per unit of risk. Coca Cola FEMSA SAB is currently generating about 0.02 per unit of volatility. If you would invest 829.00 in Coca Cola FEMSA SAB on September 12, 2024 and sell it today you would lose (9.00) from holding Coca Cola FEMSA SAB or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.33% |
| Values | Daily Returns |
Greene Concepts vs. Coca Cola FEMSA SAB
Performance |
| Timeline |
| Greene Concepts |
| Coca Cola FEMSA |
Greene Concepts and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greene Concepts and Coca Cola
The main advantage of trading using opposite Greene Concepts and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greene Concepts 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.| Greene Concepts vs. High Performance Beverages | Greene Concepts vs. V Group | Greene Concepts vs. Fbec Worldwide | Greene Concepts vs. Hiru Corporation |
| Coca Cola vs. Coca Cola Femsa SAB | Coca Cola vs. National Beverage Corp | Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. Coca Cola Consolidated |
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 CEOs Directory module to screen CEOs from public companies around the world.
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