Correlation Between Coca Cola and Intellicheck Mobilisa
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Intellicheck Mobilisa 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 Intellicheck Mobilisa 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 Intellicheck Mobilisa, you can compare the effects of market volatilities on Coca Cola and Intellicheck Mobilisa 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 Intellicheck Mobilisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Intellicheck Mobilisa.
Diversification Opportunities for Coca Cola and Intellicheck Mobilisa
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Intellicheck is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Intellicheck Mobilisa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellicheck Mobilisa 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 Intellicheck Mobilisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellicheck Mobilisa has no effect on the direction of Coca Cola i.e., Coca Cola and Intellicheck Mobilisa go up and down completely randomly.
Pair Corralation between Coca Cola and Intellicheck Mobilisa
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the Intellicheck Mobilisa. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 4.76 times less risky than Intellicheck Mobilisa. The stock trades about -0.22 of its potential returns per unit of risk. The Intellicheck Mobilisa is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 221.00 in Intellicheck Mobilisa on August 31, 2024 and sell it today you would earn a total of 24.00 from holding Intellicheck Mobilisa or generate 10.86% 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. Intellicheck Mobilisa
Performance |
| Timeline |
| Coca Cola |
| Intellicheck Mobilisa |
Coca Cola and Intellicheck Mobilisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Intellicheck Mobilisa
The main advantage of trading using opposite Coca Cola and Intellicheck Mobilisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Intellicheck Mobilisa 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 Intellicheck Mobilisa will offset losses from the drop in Intellicheck Mobilisa's long position.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Vita Coco | Coca Cola vs. RLJ Lodging Trust | Coca Cola vs. Aquagold International |
| Intellicheck Mobilisa vs. Boardwalktech Software Corp | Intellicheck Mobilisa vs. Research Solutions | Intellicheck Mobilisa vs. OneSoft Solutions | Intellicheck Mobilisa vs. ON24 Inc |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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