Correlation Between Coca Cola and AERCAP
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By analyzing existing cross correlation between The Coca Cola and AERCAP IRELAND CAP, you can compare the effects of market volatilities on Coca Cola and AERCAP 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 AERCAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and AERCAP.
Diversification Opportunities for Coca Cola and AERCAP
Weak diversification
The 3 months correlation between Coca and AERCAP is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and AERCAP IRELAND CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AERCAP IRELAND CAP 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 AERCAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AERCAP IRELAND CAP has no effect on the direction of Coca Cola i.e., Coca Cola and AERCAP go up and down completely randomly.
Pair Corralation between Coca Cola and AERCAP
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the AERCAP. In addition to that, Coca Cola is 1.54 times more volatile than AERCAP IRELAND CAP. It trades about -0.17 of its total potential returns per unit of risk. AERCAP IRELAND CAP is currently generating about 0.13 per unit of volatility. If you would invest 9,942 in AERCAP IRELAND CAP on August 28, 2024 and sell it today you would earn a total of 139.00 from holding AERCAP IRELAND CAP or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
The Coca Cola vs. AERCAP IRELAND CAP
Performance |
| Timeline |
| Coca Cola |
| AERCAP IRELAND CAP |
Coca Cola and AERCAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and AERCAP
The main advantage of trading using opposite Coca Cola and AERCAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, AERCAP 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 AERCAP will offset losses from the drop in AERCAP'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 |
| AERCAP vs. The Coca Cola | AERCAP vs. China Tontine Wines | AERCAP vs. Brandywine Realty Trust | AERCAP vs. Keurig Dr Pepper |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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