Correlation Between Coca Cola and EQUINOR
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Coca Cola and EQUINOR ASA, you can compare the effects of market volatilities on Coca Cola and EQUINOR 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 EQUINOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and EQUINOR.
Diversification Opportunities for Coca Cola and EQUINOR
Poor diversification
The 3 months correlation between Coca and EQUINOR is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and EQUINOR ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUINOR ASA 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 EQUINOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUINOR ASA has no effect on the direction of Coca Cola i.e., Coca Cola and EQUINOR go up and down completely randomly.
Pair Corralation between Coca Cola and EQUINOR
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the EQUINOR. In addition to that, Coca Cola is 3.12 times more volatile than EQUINOR ASA. It trades about -0.17 of its total potential returns per unit of risk. EQUINOR ASA is currently generating about 0.0 per unit of volatility. If you would invest 9,286 in EQUINOR ASA on August 27, 2024 and sell it today you would lose (3.00) from holding EQUINOR ASA or give up 0.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Coca Cola vs. EQUINOR ASA
Performance |
| Timeline |
| Coca Cola |
| EQUINOR ASA |
Coca Cola and EQUINOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and EQUINOR
The main advantage of trading using opposite Coca Cola and EQUINOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, EQUINOR 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 EQUINOR will offset losses from the drop in EQUINOR'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 |
| EQUINOR vs. The Coca Cola | EQUINOR vs. JPMorgan Chase Co | EQUINOR vs. Dupont De Nemours | EQUINOR vs. Alcoa 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |