Correlation Between Coca Cola and Amg Gwk
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Amg Gwk 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 Amg Gwk 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 Amg Gwk Smallmid, you can compare the effects of market volatilities on Coca Cola and Amg Gwk 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 Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Amg Gwk.
Diversification Opportunities for Coca Cola and Amg Gwk
Average diversification
The 3 months correlation between Coca and Amg is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Amg Gwk Smallmid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Smallmid 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 Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Smallmid has no effect on the direction of Coca Cola i.e., Coca Cola and Amg Gwk go up and down completely randomly.
Pair Corralation between Coca Cola and Amg Gwk
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 2.16 times more return on investment than Amg Gwk. However, Coca Cola is 2.16 times more volatile than Amg Gwk Smallmid. It trades about 0.29 of its potential returns per unit of risk. Amg Gwk Smallmid is currently generating about -0.12 per unit of risk. If you would invest 6,271 in The Coca Cola on November 18, 2024 and sell it today you would earn a total of 616.00 from holding The Coca Cola or generate 9.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Amg Gwk Smallmid
Performance |
| Timeline |
| Coca Cola |
| Amg Gwk Smallmid |
Coca Cola and Amg Gwk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Amg Gwk
The main advantage of trading using opposite Coca Cola and Amg Gwk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Amg Gwk 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 Amg Gwk will offset losses from the drop in Amg Gwk's long position.| Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Coca Cola European Partners | Coca Cola vs. Vita Coco |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |