Correlation Between Coca Cola and CMCSA
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By analyzing existing cross correlation between The Coca Cola and CMCSA 465 15 FEB 33, you can compare the effects of market volatilities on Coca Cola and CMCSA 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 CMCSA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and CMCSA.
Diversification Opportunities for Coca Cola and CMCSA
Very poor diversification
The 3 months correlation between Coca and CMCSA is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and CMCSA 465 15 FEB 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CMCSA 465 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 CMCSA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CMCSA 465 15 has no effect on the direction of Coca Cola i.e., Coca Cola and CMCSA go up and down completely randomly.
Pair Corralation between Coca Cola and CMCSA
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.4 times more return on investment than CMCSA. However, Coca Cola is 1.4 times more volatile than CMCSA 465 15 FEB 33. It trades about 0.04 of its potential returns per unit of risk. CMCSA 465 15 FEB 33 is currently generating about 0.0 per unit of risk. If you would invest 5,707 in The Coca Cola on September 2, 2024 and sell it today you would earn a total of 701.00 from holding The Coca Cola or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
The Coca Cola vs. CMCSA 465 15 FEB 33
Performance |
| Timeline |
| Coca Cola |
| CMCSA 465 15 |
Coca Cola and CMCSA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and CMCSA
The main advantage of trading using opposite Coca Cola and CMCSA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, CMCSA 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 CMCSA will offset losses from the drop in CMCSA's long position.The idea behind The Coca Cola and CMCSA 465 15 FEB 33 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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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