Correlation Between Coca Cola and Kurv Yield
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Kurv Yield 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 Kurv Yield 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 Kurv Yield Premium, you can compare the effects of market volatilities on Coca Cola and Kurv Yield 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 Kurv Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Kurv Yield.
Diversification Opportunities for Coca Cola and Kurv Yield
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Kurv is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Kurv Yield Premium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Yield Premium 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 Kurv Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Yield Premium has no effect on the direction of Coca Cola i.e., Coca Cola and Kurv Yield go up and down completely randomly.
Pair Corralation between Coca Cola and Kurv Yield
Allowing for the 90-day total investment horizon Coca Cola is expected to generate 4.1 times less return on investment than Kurv Yield. But when comparing it to its historical volatility, The Coca Cola is 1.98 times less risky than Kurv Yield. It trades about 0.01 of its potential returns per unit of risk. Kurv Yield Premium is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,990 in Kurv Yield Premium on September 12, 2024 and sell it today you would earn a total of 6.30 from holding Kurv Yield Premium or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Kurv Yield Premium
Performance |
| Timeline |
| Coca Cola |
| Kurv Yield Premium |
Coca Cola and Kurv Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Kurv Yield
The main advantage of trading using opposite Coca Cola and Kurv Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Kurv Yield 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 Kurv Yield will offset losses from the drop in Kurv Yield'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 |
| Kurv Yield vs. JPMorgan Equity Premium | Kurv Yield vs. Global X SP | Kurv Yield vs. Amplify CWP Enhanced | Kurv Yield vs. Global X Russell |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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