Correlation Between Coca Cola and Southern BancShares
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Southern BancShares 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 Southern BancShares 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 Southern BancShares PFD, you can compare the effects of market volatilities on Coca Cola and Southern BancShares 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 Southern BancShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Southern BancShares.
Diversification Opportunities for Coca Cola and Southern BancShares
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coca and Southern is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Southern BancShares PFD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern BancShares PFD 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 Southern BancShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern BancShares PFD has no effect on the direction of Coca Cola i.e., Coca Cola and Southern BancShares go up and down completely randomly.
Pair Corralation between Coca Cola and Southern BancShares
If you would invest 6,184 in The Coca Cola on November 3, 2024 and sell it today you would earn a total of 164.00 from holding The Coca Cola or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
The Coca Cola vs. Southern BancShares PFD
Performance |
| Timeline |
| Coca Cola |
| Southern BancShares PFD |
Coca Cola and Southern BancShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Southern BancShares
The main advantage of trading using opposite Coca Cola and Southern BancShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Southern BancShares 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 Southern BancShares will offset losses from the drop in Southern BancShares' long position.| Coca Cola vs. ProShares Russell Dividend | Coca Cola vs. United Rentals | Coca Cola vs. Kforce Inc | Coca Cola vs. The Ensign Group |
| Southern BancShares vs. Grocery Outlet Holding | Southern BancShares vs. PennantPark Floating Rate | Southern BancShares vs. FS KKR Capital | Southern BancShares vs. Gladstone Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |