Correlation Between Coca Cola and Sterling Check
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Sterling Check 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 Sterling Check 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 Sterling Check Corp, you can compare the effects of market volatilities on Coca Cola and Sterling Check 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 Sterling Check. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Sterling Check.
Diversification Opportunities for Coca Cola and Sterling Check
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Sterling is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Sterling Check Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Check Corp 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 Sterling Check. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Check Corp has no effect on the direction of Coca Cola i.e., Coca Cola and Sterling Check go up and down completely randomly.
Pair Corralation between Coca Cola and Sterling Check
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the Sterling Check. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 1.14 times less risky than Sterling Check. The stock trades about 0.0 of its potential returns per unit of risk. The Sterling Check Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,480 in Sterling Check Corp on September 22, 2024 and sell it today you would earn a total of 194.00 from holding Sterling Check Corp or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 72.44% |
| Values | Daily Returns |
The Coca Cola vs. Sterling Check Corp
Performance |
| Timeline |
| Coca Cola |
| Sterling Check Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and Sterling Check Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Sterling Check
The main advantage of trading using opposite Coca Cola and Sterling Check positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Sterling Check 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 Sterling Check will offset losses from the drop in Sterling Check'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 |
| Sterling Check vs. EverCommerce | Sterling Check vs. Evertec | Sterling Check vs. Consensus Cloud Solutions | Sterling Check vs. CSG Systems International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| 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 | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |