Correlation Between Coca Cola and CITIGROUP
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By analyzing existing cross correlation between The Coca Cola and CITIGROUP INC 6875, you can compare the effects of market volatilities on Coca Cola and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and CITIGROUP.
Diversification Opportunities for Coca Cola and CITIGROUP
Very poor diversification
The 3 months correlation between Coca and CITIGROUP is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and CITIGROUP INC 6875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 6875 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 6875 has no effect on the direction of Coca Cola i.e., Coca Cola and CITIGROUP go up and down completely randomly.
Pair Corralation between Coca Cola and CITIGROUP
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the CITIGROUP. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 1.46 times less risky than CITIGROUP. The stock trades about -0.26 of its potential returns per unit of risk. The CITIGROUP INC 6875 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 11,561 in CITIGROUP INC 6875 on August 25, 2024 and sell it today you would earn a total of 202.00 from holding CITIGROUP INC 6875 or generate 1.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 68.18% |
| Values | Daily Returns |
The Coca Cola vs. CITIGROUP INC 6875
Performance |
| Timeline |
| Coca Cola |
| CITIGROUP INC 6875 |
Coca Cola and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and CITIGROUP
The main advantage of trading using opposite Coca Cola and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP'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 |
| CITIGROUP vs. AEP TEX INC | CITIGROUP vs. US BANK NATIONAL | CITIGROUP vs. Eat Beyond Global | CITIGROUP vs. Charles Schwab Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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