Correlation Between Coca Cola and FDG Electric
Can any of the company-specific risk be diversified away by investing in both Coca Cola and FDG Electric 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 FDG Electric 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 FDG Electric Vehicles, you can compare the effects of market volatilities on Coca Cola and FDG Electric 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 FDG Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and FDG Electric.
Diversification Opportunities for Coca Cola and FDG Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and FDG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and FDG Electric Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDG Electric Vehicles 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 FDG Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDG Electric Vehicles has no effect on the direction of Coca Cola i.e., Coca Cola and FDG Electric go up and down completely randomly.
Pair Corralation between Coca Cola and FDG Electric
If you would invest 6,009 in The Coca Cola on August 28, 2024 and sell it today you would earn a total of 429.00 from holding The Coca Cola or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
The Coca Cola vs. FDG Electric Vehicles
Performance |
| Timeline |
| Coca Cola |
| FDG Electric Vehicles |
Coca Cola and FDG Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and FDG Electric
The main advantage of trading using opposite Coca Cola and FDG Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, FDG Electric 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 FDG Electric will offset losses from the drop in FDG Electric's long position.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper |
| FDG Electric vs. Allison Transmission Holdings | FDG Electric vs. Luminar Technologies | FDG Electric vs. Lear Corporation | FDG Electric vs. BorgWarner |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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