Correlation Between Coca Cola and Atomera
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Atomera 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 Coca Cola and Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Coca Cola and Atomera, you can compare the effects of market volatilities on Coca Cola and Atomera 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 Coca Cola with a short position of Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Atomera.
Diversification Opportunities for Coca Cola and Atomera
Pay attention - limited upside
The 3 months correlation between Coca and Atomera is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera and Coca Cola 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 The Coca Cola are associated (or correlated) with Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Coca Cola i.e., Coca Cola and Atomera go up and down completely randomly.
Pair Corralation between Coca Cola and Atomera
Allowing for the 90-day total investment horizon Coca Cola is expected to generate 4.35 times less return on investment than Atomera. But when comparing it to its historical volatility, The Coca Cola is 6.2 times less risky than Atomera. It trades about 0.02 of its potential returns per unit of risk. Atomera is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 776.00 in Atomera on August 24, 2024 and sell it today you would lose (196.00) from holding Atomera or give up 25.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Atomera
Performance |
| Timeline |
| Coca Cola |
| Atomera |
Coca Cola and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Atomera
The main advantage of trading using opposite Coca Cola and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.| Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. Eshallgo Class A | Coca Cola vs. Amtech Systems | Coca Cola vs. Gold Fields Ltd |
| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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