Correlation Between Coca Cola and FMEGR
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By analyzing existing cross correlation between The Coca Cola and FMEGR 2375 16 FEB 31, you can compare the effects of market volatilities on Coca Cola and FMEGR 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 FMEGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and FMEGR.
Diversification Opportunities for Coca Cola and FMEGR
Poor diversification
The 3 months correlation between Coca and FMEGR is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and FMEGR 2375 16 FEB 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FMEGR 2375 16 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 FMEGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FMEGR 2375 16 has no effect on the direction of Coca Cola i.e., Coca Cola and FMEGR go up and down completely randomly.
Pair Corralation between Coca Cola and FMEGR
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the FMEGR. In addition to that, Coca Cola is 1.65 times more volatile than FMEGR 2375 16 FEB 31. It trades about -0.11 of its total potential returns per unit of risk. FMEGR 2375 16 FEB 31 is currently generating about -0.17 per unit of volatility. If you would invest 8,299 in FMEGR 2375 16 FEB 31 on October 26, 2024 and sell it today you would lose (86.00) from holding FMEGR 2375 16 FEB 31 or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 72.22% |
| Values | Daily Returns |
The Coca Cola vs. FMEGR 2375 16 FEB 31
Performance |
| Timeline |
| Coca Cola |
| FMEGR 2375 16 |
Coca Cola and FMEGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and FMEGR
The main advantage of trading using opposite Coca Cola and FMEGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, FMEGR 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 FMEGR will offset losses from the drop in FMEGR's long position.| Coca Cola vs. PepsiCo | Coca Cola vs. Vita Coco | Coca Cola vs. Aquagold International | Coca Cola vs. Thrivent High Yield |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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