Correlation Between Coca Cola and AFLAC
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By analyzing existing cross correlation between The Coca Cola and AFLAC INC 4, you can compare the effects of market volatilities on Coca Cola and AFLAC 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 AFLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and AFLAC.
Diversification Opportunities for Coca Cola and AFLAC
Very weak diversification
The 3 months correlation between Coca and AFLAC is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and AFLAC INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AFLAC INC 4 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 AFLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AFLAC INC 4 has no effect on the direction of Coca Cola i.e., Coca Cola and AFLAC go up and down completely randomly.
Pair Corralation between Coca Cola and AFLAC
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.27 times more return on investment than AFLAC. However, The Coca Cola is 3.77 times less risky than AFLAC. It trades about -0.17 of its potential returns per unit of risk. AFLAC INC 4 is currently generating about -0.12 per unit of risk. If you would invest 6,667 in The Coca Cola on August 28, 2024 and sell it today you would lose (229.00) from holding The Coca Cola or give up 3.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 71.43% |
| Values | Daily Returns |
The Coca Cola vs. AFLAC INC 4
Performance |
| Timeline |
| Coca Cola |
| AFLAC INC 4 |
Coca Cola and AFLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and AFLAC
The main advantage of trading using opposite Coca Cola and AFLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, AFLAC 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 AFLAC will offset losses from the drop in AFLAC'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 |
| AFLAC vs. AEP TEX INC | AFLAC vs. US BANK NATIONAL | AFLAC vs. Eat Beyond Global | AFLAC vs. Charles Schwab 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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