Correlation Between Coca Cola and CONOCOPHILLIPS
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By analyzing existing cross correlation between The Coca Cola and CONOCOPHILLIPS 415 percent, you can compare the effects of market volatilities on Coca Cola and CONOCOPHILLIPS 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 CONOCOPHILLIPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and CONOCOPHILLIPS.
Diversification Opportunities for Coca Cola and CONOCOPHILLIPS
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Coca and CONOCOPHILLIPS is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and CONOCOPHILLIPS 415 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONOCOPHILLIPS 415 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 CONOCOPHILLIPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONOCOPHILLIPS 415 has no effect on the direction of Coca Cola i.e., Coca Cola and CONOCOPHILLIPS go up and down completely randomly.
Pair Corralation between Coca Cola and CONOCOPHILLIPS
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the CONOCOPHILLIPS. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 1.03 times less risky than CONOCOPHILLIPS. The stock trades about -0.1 of its potential returns per unit of risk. The CONOCOPHILLIPS 415 percent is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 9,380 in CONOCOPHILLIPS 415 percent on August 31, 2024 and sell it today you would lose (25.00) from holding CONOCOPHILLIPS 415 percent or give up 0.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 78.26% |
| Values | Daily Returns |
The Coca Cola vs. CONOCOPHILLIPS 415 percent
Performance |
| Timeline |
| Coca Cola |
| CONOCOPHILLIPS 415 |
Coca Cola and CONOCOPHILLIPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and CONOCOPHILLIPS
The main advantage of trading using opposite Coca Cola and CONOCOPHILLIPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, CONOCOPHILLIPS 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 CONOCOPHILLIPS will offset losses from the drop in CONOCOPHILLIPS's long position.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. RLJ Lodging Trust | Coca Cola vs. Aquagold International | Coca Cola vs. Stepstone Group |
| CONOCOPHILLIPS vs. Marine Products | CONOCOPHILLIPS vs. Life Time Group | CONOCOPHILLIPS vs. Planet Fitness | CONOCOPHILLIPS vs. Eastman Chemical |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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