Correlation Between Coca Cola and OPY Acquisition
Can any of the company-specific risk be diversified away by investing in both Coca Cola and OPY Acquisition 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 OPY Acquisition 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 OPY Acquisition I, you can compare the effects of market volatilities on Coca Cola and OPY Acquisition 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 OPY Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and OPY Acquisition.
Diversification Opportunities for Coca Cola and OPY Acquisition
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coca and OPY is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and OPY Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPY Acquisition I 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 OPY Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPY Acquisition I has no effect on the direction of Coca Cola i.e., Coca Cola and OPY Acquisition go up and down completely randomly.
Pair Corralation between Coca Cola and OPY Acquisition
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.79 times more return on investment than OPY Acquisition. However, The Coca Cola is 1.26 times less risky than OPY Acquisition. It trades about 0.02 of its potential returns per unit of risk. OPY Acquisition I is currently generating about 0.0 per unit of risk. If you would invest 6,019 in The Coca Cola on September 3, 2024 and sell it today you would earn a total of 346.00 from holding The Coca Cola or generate 5.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 30.71% |
| Values | Daily Returns |
The Coca Cola vs. OPY Acquisition I
Performance |
| Timeline |
| Coca Cola |
| OPY Acquisition I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and OPY Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and OPY Acquisition
The main advantage of trading using opposite Coca Cola and OPY Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, OPY Acquisition 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 OPY Acquisition will offset losses from the drop in OPY Acquisition'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 |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |