Correlation Between Coca Cola and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Aim Investment 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 Aim Investment 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 Aim Investment Secs, you can compare the effects of market volatilities on Coca Cola and Aim Investment 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 Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Aim Investment.
Diversification Opportunities for Coca Cola and Aim Investment
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Coca and Aim is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Aim Investment Secs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Secs 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Secs has no effect on the direction of Coca Cola i.e., Coca Cola and Aim Investment go up and down completely randomly.
Pair Corralation between Coca Cola and Aim Investment
If you would invest 100.00 in Aim Investment Secs on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Aim Investment Secs or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Aim Investment Secs
Performance |
| Timeline |
| Coca Cola |
| Aim Investment Secs |
Coca Cola and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Aim Investment
The main advantage of trading using opposite Coca Cola and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment'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 |
| Aim Investment vs. Dimensional Retirement Income | Aim Investment vs. Blackrock Moderate Prepared | Aim Investment vs. Pgim Conservative Retirement | Aim Investment vs. Transamerica Cleartrack Retirement |
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.
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