Correlation Between Coca Cola and Gilat Satellite
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Gilat Satellite 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 Gilat Satellite 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 Gilat Satellite Networks, you can compare the effects of market volatilities on Coca Cola and Gilat Satellite 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 Gilat Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Gilat Satellite.
Diversification Opportunities for Coca Cola and Gilat Satellite
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Gilat is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Gilat Satellite Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gilat Satellite Networks 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 Gilat Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gilat Satellite Networks has no effect on the direction of Coca Cola i.e., Coca Cola and Gilat Satellite go up and down completely randomly.
Pair Corralation between Coca Cola and Gilat Satellite
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.36 times more return on investment than Gilat Satellite. However, The Coca Cola is 2.81 times less risky than Gilat Satellite. It trades about 0.04 of its potential returns per unit of risk. Gilat Satellite Networks is currently generating about 0.01 per unit of risk. If you would invest 5,722 in The Coca Cola on August 31, 2024 and sell it today you would earn a total of 686.00 from holding The Coca Cola or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Gilat Satellite Networks
Performance |
| Timeline |
| Coca Cola |
| Gilat Satellite Networks |
Coca Cola and Gilat Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Gilat Satellite
The main advantage of trading using opposite Coca Cola and Gilat Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Gilat Satellite 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 Gilat Satellite will offset losses from the drop in Gilat Satellite's long position.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. RLJ Lodging Trust | Coca Cola vs. Aquagold International | Coca Cola vs. Stepstone Group |
| Gilat Satellite vs. ADTRAN Inc | Gilat Satellite vs. Mynaric AG ADR | Gilat Satellite vs. KVH Industries | Gilat Satellite vs. Telesat Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |