Correlation Between Coca Cola and FG Merger
Can any of the company-specific risk be diversified away by investing in both Coca Cola and FG Merger 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 FG Merger 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 FG Merger Corp, you can compare the effects of market volatilities on Coca Cola and FG Merger 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 FG Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and FG Merger.
Diversification Opportunities for Coca Cola and FG Merger
Very good diversification
The 3 months correlation between Coca and FGMC is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and FG Merger Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FG Merger 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 FG Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FG Merger Corp has no effect on the direction of Coca Cola i.e., Coca Cola and FG Merger go up and down completely randomly.
Pair Corralation between Coca Cola and FG Merger
If you would invest 1,062 in FG Merger Corp on October 22, 2024 and sell it today you would earn a total of 0.00 from holding FG Merger Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
The Coca Cola vs. FG Merger Corp
Performance |
| Timeline |
| Coca Cola |
| FG Merger Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and FG Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and FG Merger
The main advantage of trading using opposite Coca Cola and FG Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, FG Merger 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 FG Merger will offset losses from the drop in FG Merger's long position.| Coca Cola vs. Coca Cola Femsa SAB | Coca Cola vs. Roche Holding AG | Coca Cola vs. Champions Oncology | Coca Cola vs. Target 2030 Fund |
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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