Correlation Between Coca Cola and Sumo Logic
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Sumo Logic 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 Sumo Logic 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 Sumo Logic, you can compare the effects of market volatilities on Coca Cola and Sumo Logic 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 Sumo Logic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Sumo Logic.
Diversification Opportunities for Coca Cola and Sumo Logic
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Sumo is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Sumo Logic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumo Logic 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 Sumo Logic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumo Logic has no effect on the direction of Coca Cola i.e., Coca Cola and Sumo Logic go up and down completely randomly.
Pair Corralation between Coca Cola and Sumo Logic
Allowing for the 90-day total investment horizon Coca Cola is expected to generate 23.2 times less return on investment than Sumo Logic. But when comparing it to its historical volatility, The Coca Cola is 4.24 times less risky than Sumo Logic. It trades about 0.02 of its potential returns per unit of risk. Sumo Logic is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 891.00 in Sumo Logic on September 4, 2024 and sell it today you would earn a total of 313.00 from holding Sumo Logic or generate 35.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 21.21% |
| Values | Daily Returns |
The Coca Cola vs. Sumo Logic
Performance |
| Timeline |
| Coca Cola |
| Sumo Logic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and Sumo Logic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Sumo Logic
The main advantage of trading using opposite Coca Cola and Sumo Logic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Sumo Logic 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 Sumo Logic will offset losses from the drop in Sumo Logic'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 |
| Sumo Logic vs. PagSeguro Digital | Sumo Logic vs. Endava | Sumo Logic vs. Nutanix | Sumo Logic vs. Palo Alto Networks |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| 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 |