Correlation Between Coca Cola and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Thai Oil 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 Thai Oil 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 Thai Oil Public, you can compare the effects of market volatilities on Coca Cola and Thai Oil 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 Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Thai Oil.
Diversification Opportunities for Coca Cola and Thai Oil
Pay attention - limited upside
The 3 months correlation between Coca and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Thai Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil Public 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 Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil Public has no effect on the direction of Coca Cola i.e., Coca Cola and Thai Oil go up and down completely randomly.
Pair Corralation between Coca Cola and Thai Oil
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.99 times more return on investment than Thai Oil. However, The Coca Cola is 1.01 times less risky than Thai Oil. It trades about 0.05 of its potential returns per unit of risk. Thai Oil Public is currently generating about -0.11 per unit of risk. If you would invest 6,099 in The Coca Cola on September 3, 2024 and sell it today you would earn a total of 309.00 from holding The Coca Cola or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 58.9% |
| Values | Daily Returns |
The Coca Cola vs. Thai Oil Public
Performance |
| Timeline |
| Coca Cola |
| Thai Oil Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coca Cola and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Thai Oil
The main advantage of trading using opposite Coca Cola and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Thai Oil 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 Thai Oil will offset losses from the drop in Thai Oil'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 |
| Thai Oil vs. Zhihu Inc ADR | Thai Oil vs. Dave Busters Entertainment | Thai Oil vs. Weibo Corp | Thai Oil vs. RCS MediaGroup SpA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| 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 | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |