Correlation Between Coca Cola and Strattner Financial
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Strattner Financial 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 Strattner Financial 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 Strattner Financial Group, you can compare the effects of market volatilities on Coca Cola and Strattner Financial 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 Strattner Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Strattner Financial.
Diversification Opportunities for Coca Cola and Strattner Financial
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Strattner is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Strattner Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strattner Financial 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 Strattner Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strattner Financial has no effect on the direction of Coca Cola i.e., Coca Cola and Strattner Financial go up and down completely randomly.
Pair Corralation between Coca Cola and Strattner Financial
If you would invest 0.02 in Strattner Financial Group on September 4, 2024 and sell it today you would earn a total of 0.00 from holding Strattner Financial Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Coca Cola vs. Strattner Financial Group
Performance |
| Timeline |
| Coca Cola |
| Strattner Financial |
Coca Cola and Strattner Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Strattner Financial
The main advantage of trading using opposite Coca Cola and Strattner Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Strattner Financial 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 Strattner Financial will offset losses from the drop in Strattner Financial'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 |
| Strattner Financial vs. Dorchester Minerals LP | Strattner Financial vs. 88 Energy Limited | Strattner Financial vs. Hess Corporation | Strattner Financial vs. Antero Resources Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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