Correlation Between Coca Cola and 06051GKB4
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By analyzing existing cross correlation between The Coca Cola and BANK OF AMERICA, you can compare the effects of market volatilities on Coca Cola and 06051GKB4 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 06051GKB4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and 06051GKB4.
Diversification Opportunities for Coca Cola and 06051GKB4
Very poor diversification
The 3 months correlation between Coca and 06051GKB4 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and BANK OF AMERICA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK OF AMERICA 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 06051GKB4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK OF AMERICA has no effect on the direction of Coca Cola i.e., Coca Cola and 06051GKB4 go up and down completely randomly.
Pair Corralation between Coca Cola and 06051GKB4
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.62 times more return on investment than 06051GKB4. However, The Coca Cola is 1.61 times less risky than 06051GKB4. It trades about 0.02 of its potential returns per unit of risk. BANK OF AMERICA is currently generating about -0.01 per unit of risk. If you would invest 6,016 in The Coca Cola on August 24, 2024 and sell it today you would earn a total of 376.00 from holding The Coca Cola or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.15% |
| Values | Daily Returns |
The Coca Cola vs. BANK OF AMERICA
Performance |
| Timeline |
| Coca Cola |
| BANK OF AMERICA |
Coca Cola and 06051GKB4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and 06051GKB4
The main advantage of trading using opposite Coca Cola and 06051GKB4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, 06051GKB4 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 06051GKB4 will offset losses from the drop in 06051GKB4's long position.| Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. Eshallgo Class A | Coca Cola vs. Amtech Systems | Coca Cola vs. Gold Fields Ltd |
| 06051GKB4 vs. Western Acquisition Ventures | 06051GKB4 vs. JD Sports Fashion | 06051GKB4 vs. Brunswick | 06051GKB4 vs. Sabre Corpo |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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