Correlation Between Coca Cola and Fidelity Total
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Fidelity Total 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 Fidelity Total 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 Fidelity Total Emerging, you can compare the effects of market volatilities on Coca Cola and Fidelity Total 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 Fidelity Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Fidelity Total.
Diversification Opportunities for Coca Cola and Fidelity Total
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Fidelity is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Fidelity Total Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Total Emerging 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 Fidelity Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Total Emerging has no effect on the direction of Coca Cola i.e., Coca Cola and Fidelity Total go up and down completely randomly.
Pair Corralation between Coca Cola and Fidelity Total
Allowing for the 90-day total investment horizon Coca Cola is expected to generate 1.4 times less return on investment than Fidelity Total. In addition to that, Coca Cola is 1.39 times more volatile than Fidelity Total Emerging. It trades about 0.03 of its total potential returns per unit of risk. Fidelity Total Emerging is currently generating about 0.07 per unit of volatility. If you would invest 1,108 in Fidelity Total Emerging on November 5, 2024 and sell it today you would earn a total of 191.00 from holding Fidelity Total Emerging or generate 17.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 84.04% |
| Values | Daily Returns |
The Coca Cola vs. Fidelity Total Emerging
Performance |
| Timeline |
| Coca Cola |
| Fidelity Total Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and Fidelity Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Fidelity Total
The main advantage of trading using opposite Coca Cola and Fidelity Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Fidelity Total 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 Fidelity Total will offset losses from the drop in Fidelity Total'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 |
| Fidelity Total vs. Fidelity Emerging Markets | Fidelity Total vs. Fidelity Total International | Fidelity Total vs. Fidelity Global Equity | Fidelity Total vs. Fidelity International Value |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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