Correlation Between Coca Cola and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Eagle Mid 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 Eagle Mid 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 Eagle Mid Cap, you can compare the effects of market volatilities on Coca Cola and Eagle Mid 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 Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Eagle Mid.
Diversification Opportunities for Coca Cola and Eagle Mid
Pay attention - limited upside
The 3 months correlation between Coca and Eagle is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap 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 Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Coca Cola i.e., Coca Cola and Eagle Mid go up and down completely randomly.
Pair Corralation between Coca Cola and Eagle Mid
If you would invest 8,175 in Eagle Mid Cap on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Eagle Mid Cap or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Coca Cola vs. Eagle Mid Cap
Performance |
| Timeline |
| Coca Cola |
| Eagle Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Eagle Mid
The main advantage of trading using opposite Coca Cola and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid'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 |
| Eagle Mid vs. Dunham Large Cap | Eagle Mid vs. Avantis Large Cap | Eagle Mid vs. Vanguard Windsor Fund | Eagle Mid vs. Qs Large Cap |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |