Correlation Between Coca Cola and Keros Therapeutics
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Keros Therapeutics 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 Keros Therapeutics 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 Keros Therapeutics, you can compare the effects of market volatilities on Coca Cola and Keros Therapeutics 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 Keros Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Keros Therapeutics.
Diversification Opportunities for Coca Cola and Keros Therapeutics
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coca and Keros is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Keros Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keros Therapeutics 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 Keros Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keros Therapeutics has no effect on the direction of Coca Cola i.e., Coca Cola and Keros Therapeutics go up and down completely randomly.
Pair Corralation between Coca Cola and Keros Therapeutics
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.29 times more return on investment than Keros Therapeutics. However, The Coca Cola is 3.4 times less risky than Keros Therapeutics. It trades about -0.31 of its potential returns per unit of risk. Keros Therapeutics is currently generating about -0.09 per unit of risk. If you would invest 6,801 in The Coca Cola on August 24, 2024 and sell it today you would lose (425.00) from holding The Coca Cola or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Keros Therapeutics
Performance |
| Timeline |
| Coca Cola |
| Keros Therapeutics |
Coca Cola and Keros Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Keros Therapeutics
The main advantage of trading using opposite Coca Cola and Keros Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Keros Therapeutics 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 Keros Therapeutics will offset losses from the drop in Keros Therapeutics' long position.| Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. Eshallgo Class A | Coca Cola vs. Amtech Systems | Coca Cola vs. Gold Fields Ltd |
| Keros Therapeutics vs. Ideaya Biosciences | Keros Therapeutics vs. AnaptysBio | Keros Therapeutics vs. MeiraGTx Holdings PLC | Keros Therapeutics vs. Janux Therapeutics |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |