Correlation Between Coca Cola and CF Acquisition
Can any of the company-specific risk be diversified away by investing in both Coca Cola and CF Acquisition 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 CF Acquisition 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 CF Acquisition Corp, you can compare the effects of market volatilities on Coca Cola and CF Acquisition 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 CF Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and CF Acquisition.
Diversification Opportunities for Coca Cola and CF Acquisition
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coca and CFIVW is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and CF Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Acquisition Corp 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 CF Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Acquisition Corp has no effect on the direction of Coca Cola i.e., Coca Cola and CF Acquisition go up and down completely randomly.
Pair Corralation between Coca Cola and CF Acquisition
If you would invest 5,727 in The Coca Cola on August 29, 2024 and sell it today you would earn a total of 728.00 from holding The Coca Cola or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
The Coca Cola vs. CF Acquisition Corp
Performance |
| Timeline |
| Coca Cola |
| CF Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and CF Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and CF Acquisition
The main advantage of trading using opposite Coca Cola and CF Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, CF Acquisition 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 CF Acquisition will offset losses from the drop in CF Acquisition'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 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |