Correlation Between Coca Cola and Gaslog Partners
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Gaslog Partners 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 Gaslog Partners 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 Gaslog Partners LP, you can compare the effects of market volatilities on Coca Cola and Gaslog Partners 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 Gaslog Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Gaslog Partners.
Diversification Opportunities for Coca Cola and Gaslog Partners
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Gaslog is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Gaslog Partners LP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaslog Partners LP 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 Gaslog Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaslog Partners LP has no effect on the direction of Coca Cola i.e., Coca Cola and Gaslog Partners go up and down completely randomly.
Pair Corralation between Coca Cola and Gaslog Partners
If you would invest 5,714 in The Coca Cola on August 26, 2024 and sell it today you would earn a total of 678.00 from holding The Coca Cola or generate 11.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.4% |
| Values | Daily Returns |
The Coca Cola vs. Gaslog Partners LP
Performance |
| Timeline |
| Coca Cola |
| Gaslog Partners LP |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and Gaslog Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Gaslog Partners
The main advantage of trading using opposite Coca Cola and Gaslog Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Gaslog Partners 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 Gaslog Partners will offset losses from the drop in Gaslog Partners' long position.The idea behind The Coca Cola and Gaslog Partners LP pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Gaslog Partners vs. Brooge Holdings | Gaslog Partners vs. Dynagas LNG Partners | Gaslog Partners vs. Dynagas LNG Partners | Gaslog Partners vs. Martin Midstream Partners |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |