Correlation Between Coca Cola and BOSTON
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By analyzing existing cross correlation between The Coca Cola and BOSTON PPTYS LTD, you can compare the effects of market volatilities on Coca Cola and BOSTON 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 BOSTON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and BOSTON.
Diversification Opportunities for Coca Cola and BOSTON
Very good diversification
The 3 months correlation between Coca and BOSTON is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and BOSTON PPTYS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOSTON PPTYS LTD 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 BOSTON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOSTON PPTYS LTD has no effect on the direction of Coca Cola i.e., Coca Cola and BOSTON go up and down completely randomly.
Pair Corralation between Coca Cola and BOSTON
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.39 times more return on investment than BOSTON. However, Coca Cola is 1.39 times more volatile than BOSTON PPTYS LTD. It trades about 0.05 of its potential returns per unit of risk. BOSTON PPTYS LTD is currently generating about 0.01 per unit of risk. If you would invest 5,942 in The Coca Cola on November 27, 2024 and sell it today you would earn a total of 1,117 from holding The Coca Cola or generate 18.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. BOSTON PPTYS LTD
Performance |
| Timeline |
| Coca Cola |
| BOSTON PPTYS LTD |
Coca Cola and BOSTON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and BOSTON
The main advantage of trading using opposite Coca Cola and BOSTON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, BOSTON 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 BOSTON will offset losses from the drop in BOSTON's long position.| Coca Cola vs. Vita Coco | Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. PepsiCo | Coca Cola vs. Coca Cola Femsa SAB |
| BOSTON vs. PPG Industries | BOSTON vs. Air Products and | BOSTON vs. NL Industries | BOSTON vs. Summit Hotel Properties |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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