Correlation Between Coca Cola and BCECN
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By analyzing existing cross correlation between The Coca Cola and BCECN 215 15 FEB 32, you can compare the effects of market volatilities on Coca Cola and BCECN 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 BCECN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and BCECN.
Diversification Opportunities for Coca Cola and BCECN
Poor diversification
The 3 months correlation between Coca and BCECN is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and BCECN 215 15 FEB 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCECN 215 15 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 BCECN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCECN 215 15 has no effect on the direction of Coca Cola i.e., Coca Cola and BCECN go up and down completely randomly.
Pair Corralation between Coca Cola and BCECN
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.99 times more return on investment than BCECN. However, The Coca Cola is 1.01 times less risky than BCECN. It trades about 0.02 of its potential returns per unit of risk. BCECN 215 15 FEB 32 is currently generating about 0.0 per unit of risk. If you would invest 5,959 in The Coca Cola on September 12, 2024 and sell it today you would earn a total of 332.00 from holding The Coca Cola or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 74.43% |
| Values | Daily Returns |
The Coca Cola vs. BCECN 215 15 FEB 32
Performance |
| Timeline |
| Coca Cola |
| BCECN 215 15 |
Coca Cola and BCECN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and BCECN
The main advantage of trading using opposite Coca Cola and BCECN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, BCECN 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 BCECN will offset losses from the drop in BCECN'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 |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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