Correlation Between Coca Cola and EXPEDIA
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By analyzing existing cross correlation between The Coca Cola and EXPEDIA GROUP INC, you can compare the effects of market volatilities on Coca Cola and EXPEDIA 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 EXPEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and EXPEDIA.
Diversification Opportunities for Coca Cola and EXPEDIA
Very good diversification
The 3 months correlation between Coca and EXPEDIA is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and EXPEDIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXPEDIA GROUP INC 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 EXPEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXPEDIA GROUP INC has no effect on the direction of Coca Cola i.e., Coca Cola and EXPEDIA go up and down completely randomly.
Pair Corralation between Coca Cola and EXPEDIA
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the EXPEDIA. In addition to that, Coca Cola is 8.7 times more volatile than EXPEDIA GROUP INC. It trades about -0.17 of its total potential returns per unit of risk. EXPEDIA GROUP INC is currently generating about -0.03 per unit of volatility. If you would invest 10,020 in EXPEDIA GROUP INC on August 28, 2024 and sell it today you would lose (4.00) from holding EXPEDIA GROUP INC or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
The Coca Cola vs. EXPEDIA GROUP INC
Performance |
| Timeline |
| Coca Cola |
| EXPEDIA GROUP INC |
Coca Cola and EXPEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and EXPEDIA
The main advantage of trading using opposite Coca Cola and EXPEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, EXPEDIA 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 EXPEDIA will offset losses from the drop in EXPEDIA'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 |
| EXPEDIA vs. The Coca Cola | EXPEDIA vs. JPMorgan Chase Co | EXPEDIA vs. Dupont De Nemours | EXPEDIA 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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