Correlation Between Coca Cola and CARLISLE
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By analyzing existing cross correlation between The Coca Cola and CARLISLE INC 375, you can compare the effects of market volatilities on Coca Cola and CARLISLE 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 CARLISLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and CARLISLE.
Diversification Opportunities for Coca Cola and CARLISLE
Poor diversification
The 3 months correlation between Coca and CARLISLE is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and CARLISLE INC 375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CARLISLE INC 375 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 CARLISLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CARLISLE INC 375 has no effect on the direction of Coca Cola i.e., Coca Cola and CARLISLE go up and down completely randomly.
Pair Corralation between Coca Cola and CARLISLE
Allowing for the 90-day total investment horizon Coca Cola is expected to generate 1.17 times less return on investment than CARLISLE. In addition to that, Coca Cola is 2.8 times more volatile than CARLISLE INC 375. It trades about 0.02 of its total potential returns per unit of risk. CARLISLE INC 375 is currently generating about 0.07 per unit of volatility. If you would invest 9,540 in CARLISLE INC 375 on September 3, 2024 and sell it today you would earn a total of 225.00 from holding CARLISLE INC 375 or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.2% |
| Values | Daily Returns |
The Coca Cola vs. CARLISLE INC 375
Performance |
| Timeline |
| Coca Cola |
| CARLISLE INC 375 |
Coca Cola and CARLISLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and CARLISLE
The main advantage of trading using opposite Coca Cola and CARLISLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, CARLISLE 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 CARLISLE will offset losses from the drop in CARLISLE'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 |
| CARLISLE vs. The Travelers Companies | CARLISLE vs. GE Aerospace | CARLISLE vs. Walmart | CARLISLE vs. Pfizer Inc |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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