Correlation Between Coca Cola and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Natixis ETF 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 Natixis ETF 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 Natixis ETF Trust, you can compare the effects of market volatilities on Coca Cola and Natixis ETF 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 Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Natixis ETF.
Diversification Opportunities for Coca Cola and Natixis ETF
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Natixis is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF Trust 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 Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of Coca Cola i.e., Coca Cola and Natixis ETF go up and down completely randomly.
Pair Corralation between Coca Cola and Natixis ETF
Allowing for the 90-day total investment horizon Coca Cola is expected to generate 197.03 times less return on investment than Natixis ETF. But when comparing it to its historical volatility, The Coca Cola is 64.03 times less risky than Natixis ETF. It trades about 0.02 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Natixis ETF Trust on September 3, 2024 and sell it today you would earn a total of 3,849 from holding Natixis ETF Trust or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 72.93% |
| Values | Daily Returns |
The Coca Cola vs. Natixis ETF Trust
Performance |
| Timeline |
| Coca Cola |
| Natixis ETF Trust |
Coca Cola and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Natixis ETF
The main advantage of trading using opposite Coca Cola and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Natixis ETF 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 Natixis ETF will offset losses from the drop in Natixis ETF'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 |
| Natixis ETF vs. FT Vest Equity | Natixis ETF vs. Northern Lights | Natixis ETF vs. Dimensional International High | Natixis ETF vs. JPMorgan Fundamental Data |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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