Correlation Between Coca Cola and Calamos Global
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Calamos Global 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 Calamos Global 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 Calamos Global Growth, you can compare the effects of market volatilities on Coca Cola and Calamos Global 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 Calamos Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Calamos Global.
Diversification Opportunities for Coca Cola and Calamos Global
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coca and Calamos is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Calamos Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Global Growth 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 Calamos Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Global Growth has no effect on the direction of Coca Cola i.e., Coca Cola and Calamos Global go up and down completely randomly.
Pair Corralation between Coca Cola and Calamos Global
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.1 times more return on investment than Calamos Global. However, Coca Cola is 1.1 times more volatile than Calamos Global Growth. It trades about 0.06 of its potential returns per unit of risk. Calamos Global Growth is currently generating about 0.06 per unit of risk. If you would invest 5,648 in The Coca Cola on November 27, 2024 and sell it today you would earn a total of 1,411 from holding The Coca Cola or generate 24.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Calamos Global Growth
Performance |
| Timeline |
| Coca Cola |
| Calamos Global Growth |
Coca Cola and Calamos Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Calamos Global
The main advantage of trading using opposite Coca Cola and Calamos Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Calamos Global 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 Calamos Global will offset losses from the drop in Calamos Global's long position.| Coca Cola vs. Vita Coco | Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. PepsiCo | Coca Cola vs. Coca Cola Femsa SAB |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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