Correlation Between Know Labs and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Know Labs 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 Know Labs and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Know Labs and Coca Cola Consolidated, you can compare the effects of market volatilities on Know Labs 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 Know Labs with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Know Labs and Coca Cola.
Diversification Opportunities for Know Labs and Coca Cola
Very weak diversification
The 3 months correlation between Know and Coca is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Know Labs and Coca Cola Consolidated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Consolidated and Know Labs 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 Know Labs 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 Consolidated has no effect on the direction of Know Labs i.e., Know Labs and Coca Cola go up and down completely randomly.
Pair Corralation between Know Labs and Coca Cola
Considering the 90-day investment horizon Know Labs is expected to under-perform the Coca Cola. In addition to that, Know Labs is 3.67 times more volatile than Coca Cola Consolidated. It trades about -0.02 of its total potential returns per unit of risk. Coca Cola Consolidated is currently generating about 0.11 per unit of volatility. If you would invest 63,045 in Coca Cola Consolidated on August 28, 2024 and sell it today you would earn a total of 66,915 from holding Coca Cola Consolidated or generate 106.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Know Labs vs. Coca Cola Consolidated
Performance |
| Timeline |
| Know Labs |
| Coca Cola Consolidated |
Know Labs and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Know Labs and Coca Cola
The main advantage of trading using opposite Know Labs and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Know Labs 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.| Know Labs vs. Wearable Devices | Know Labs vs. Yoshiharu Global Co | Know Labs vs. bioAffinity Technologies, | Know Labs vs. Jianzhi Education Technology |
| Coca Cola vs. The Coca Cola | Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Keurig Dr Pepper |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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