Correlation Between Coca Cola and JetAI
Can any of the company-specific risk be diversified away by investing in both Coca Cola and JetAI 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 JetAI 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 JetAI Inc, you can compare the effects of market volatilities on Coca Cola and JetAI 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 JetAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and JetAI.
Diversification Opportunities for Coca Cola and JetAI
Almost no diversification
The 3 months correlation between Coca and JetAI is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and JetAI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetAI Inc 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 JetAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetAI Inc has no effect on the direction of Coca Cola i.e., Coca Cola and JetAI go up and down completely randomly.
Pair Corralation between Coca Cola and JetAI
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.08 times more return on investment than JetAI. However, The Coca Cola is 11.91 times less risky than JetAI. It trades about 0.06 of its potential returns per unit of risk. JetAI Inc is currently generating about -0.15 per unit of risk. If you would invest 5,709 in The Coca Cola on September 14, 2024 and sell it today you would earn a total of 671.50 from holding The Coca Cola or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. JetAI Inc
Performance |
| Timeline |
| Coca Cola |
| JetAI Inc |
Coca Cola and JetAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and JetAI
The main advantage of trading using opposite Coca Cola and JetAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, JetAI 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 JetAI will offset losses from the drop in JetAI'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 |
| JetAI vs. Siriuspoint | JetAI vs. Ark Restaurants Corp | JetAI vs. Glacier Bancorp | JetAI vs. Artisan Partners Asset |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |