Correlation Between Coca Cola and Day Hagan
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Day Hagan 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 Day Hagan 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 Day Hagan Tactical, you can compare the effects of market volatilities on Coca Cola and Day Hagan 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 Day Hagan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Day Hagan.
Diversification Opportunities for Coca Cola and Day Hagan
Very good diversification
The 3 months correlation between Coca and Day is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Day Hagan Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Day Hagan Tactical 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 Day Hagan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Day Hagan Tactical has no effect on the direction of Coca Cola i.e., Coca Cola and Day Hagan go up and down completely randomly.
Pair Corralation between Coca Cola and Day Hagan
If you would invest (100.00) in Day Hagan Tactical on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Day Hagan Tactical or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
The Coca Cola vs. Day Hagan Tactical
Performance |
| Timeline |
| Coca Cola |
| Day Hagan Tactical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and Day Hagan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Day Hagan
The main advantage of trading using opposite Coca Cola and Day Hagan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Day Hagan 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 Day Hagan will offset losses from the drop in Day Hagan'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 |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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