Correlation Between Coca Cola and Amplify Thematic
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Amplify Thematic 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 Amplify Thematic 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 Amplify Thematic All Stars, you can compare the effects of market volatilities on Coca Cola and Amplify Thematic 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 Amplify Thematic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Amplify Thematic.
Diversification Opportunities for Coca Cola and Amplify Thematic
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Amplify is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Amplify Thematic All Stars in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Thematic All 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 Amplify Thematic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Thematic All has no effect on the direction of Coca Cola i.e., Coca Cola and Amplify Thematic go up and down completely randomly.
Pair Corralation between Coca Cola and Amplify Thematic
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the Amplify Thematic. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 1.65 times less risky than Amplify Thematic. The stock trades about -0.09 of its potential returns per unit of risk. The Amplify Thematic All Stars is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,276 in Amplify Thematic All Stars on August 30, 2024 and sell it today you would earn a total of 135.00 from holding Amplify Thematic All Stars or generate 5.93% 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. Amplify Thematic All Stars
Performance |
| Timeline |
| Coca Cola |
| Amplify Thematic All |
Coca Cola and Amplify Thematic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Amplify Thematic
The main advantage of trading using opposite Coca Cola and Amplify Thematic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Amplify Thematic 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 Amplify Thematic will offset losses from the drop in Amplify Thematic's long position.| Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola European Partners | Coca Cola vs. Capital Income Builder | Coca Cola vs. Direxion Daily FTSE |
| Amplify Thematic vs. Nexalin Technology | Amplify Thematic vs. Kilroy Realty Corp | Amplify Thematic vs. Highwoods Properties | Amplify Thematic vs. Karat Packaging |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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