Correlation Between Coca Cola and Crestwood Equity
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Crestwood Equity 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 Crestwood Equity 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 Crestwood Equity Partners, you can compare the effects of market volatilities on Coca Cola and Crestwood Equity 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 Crestwood Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Crestwood Equity.
Diversification Opportunities for Coca Cola and Crestwood Equity
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coca and Crestwood is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Crestwood Equity Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crestwood Equity Partners 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 Crestwood Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crestwood Equity Partners has no effect on the direction of Coca Cola i.e., Coca Cola and Crestwood Equity go up and down completely randomly.
Pair Corralation between Coca Cola and Crestwood Equity
If you would invest 6,184 in The Coca Cola on November 3, 2024 and sell it today you would earn a total of 164.00 from holding The Coca Cola or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Coca Cola vs. Crestwood Equity Partners
Performance |
| Timeline |
| Coca Cola |
| Crestwood Equity Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and Crestwood Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Crestwood Equity
The main advantage of trading using opposite Coca Cola and Crestwood Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Crestwood Equity 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 Crestwood Equity will offset losses from the drop in Crestwood Equity'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 |
| Crestwood Equity vs. Western Midstream Partners | Crestwood Equity vs. DT Midstream | Crestwood Equity vs. MPLX LP | Crestwood Equity vs. Enterprise Products Partners |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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