Correlation Between Coca Cola and Crew Energy
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Crew Energy 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 Crew Energy 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 Crew Energy, you can compare the effects of market volatilities on Coca Cola and Crew Energy 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 Crew Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Crew Energy.
Diversification Opportunities for Coca Cola and Crew Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Crew is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Crew Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crew Energy 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 Crew Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crew Energy has no effect on the direction of Coca Cola i.e., Coca Cola and Crew Energy go up and down completely randomly.
Pair Corralation between Coca Cola and Crew Energy
If you would invest 6,238 in The Coca Cola on October 23, 2024 and sell it today you would earn a total of 33.00 from holding The Coca Cola or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.56% |
| Values | Daily Returns |
The Coca Cola vs. Crew Energy
Performance |
| Timeline |
| Coca Cola |
| Crew Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and Crew Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Crew Energy
The main advantage of trading using opposite Coca Cola and Crew Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Crew Energy 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 Crew Energy will offset losses from the drop in Crew Energy's long position.| Coca Cola vs. Celsius Holdings | Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Coca Cola Femsa SAB | Coca Cola vs. Keurig Dr Pepper |
| Crew Energy vs. Surge Energy | Crew Energy vs. Athabasca Oil Corp | Crew Energy vs. Birchcliff Energy | Crew Energy vs. Tamarack Valley Energy |
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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