Correlation Between Coca Cola and IMAC Holdings
Can any of the company-specific risk be diversified away by investing in both Coca Cola and IMAC Holdings 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 IMAC Holdings 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 IMAC Holdings, you can compare the effects of market volatilities on Coca Cola and IMAC Holdings 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 IMAC Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and IMAC Holdings.
Diversification Opportunities for Coca Cola and IMAC Holdings
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coca and IMAC is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and IMAC Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IMAC Holdings 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 IMAC Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IMAC Holdings has no effect on the direction of Coca Cola i.e., Coca Cola and IMAC Holdings go up and down completely randomly.
Pair Corralation between Coca Cola and IMAC Holdings
If you would invest 6,184 in The Coca Cola on November 3, 2024 and sell it today you would earn a total of 164.00 from holding The Coca Cola or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
The Coca Cola vs. IMAC Holdings
Performance |
| Timeline |
| Coca Cola |
| IMAC Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and IMAC Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and IMAC Holdings
The main advantage of trading using opposite Coca Cola and IMAC Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, IMAC Holdings 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 IMAC Holdings will offset losses from the drop in IMAC Holdings' long position.| Coca Cola vs. ProShares Russell Dividend | Coca Cola vs. United Rentals | Coca Cola vs. Kforce Inc | Coca Cola vs. The Ensign Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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