Correlation Between Coca Cola and EMagin
Can any of the company-specific risk be diversified away by investing in both Coca Cola and EMagin 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 EMagin 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 EMagin, you can compare the effects of market volatilities on Coca Cola and EMagin 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 EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and EMagin.
Diversification Opportunities for Coca Cola and EMagin
Very good diversification
The 3 months correlation between Coca and EMagin is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin 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 EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of Coca Cola i.e., Coca Cola and EMagin go up and down completely randomly.
Pair Corralation between Coca Cola and EMagin
If you would invest 200.00 in EMagin on August 27, 2024 and sell it today you would earn a total of 0.00 from holding EMagin or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Coca Cola vs. EMagin
Performance |
| Timeline |
| Coca Cola |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and EMagin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and EMagin
The main advantage of trading using opposite Coca Cola and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin'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 |
| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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