Correlation Between Coca Cola and Griffon
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By analyzing existing cross correlation between The Coca Cola and Griffon 575, you can compare the effects of market volatilities on Coca Cola and Griffon 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 Griffon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Griffon.
Diversification Opportunities for Coca Cola and Griffon
Modest diversification
The 3 months correlation between Coca and Griffon is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Griffon 575 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Griffon 575 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 Griffon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Griffon 575 has no effect on the direction of Coca Cola i.e., Coca Cola and Griffon go up and down completely randomly.
Pair Corralation between Coca Cola and Griffon
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.1 times more return on investment than Griffon. However, Coca Cola is 1.1 times more volatile than Griffon 575. It trades about 0.02 of its potential returns per unit of risk. Griffon 575 is currently generating about -0.03 per unit of risk. If you would invest 6,251 in The Coca Cola on September 5, 2024 and sell it today you would earn a total of 101.00 from holding The Coca Cola or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
The Coca Cola vs. Griffon 575
Performance |
| Timeline |
| Coca Cola |
| Griffon 575 |
Coca Cola and Griffon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Griffon
The main advantage of trading using opposite Coca Cola and Griffon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Griffon 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 Griffon will offset losses from the drop in Griffon'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 |
| Griffon vs. Sun Country Airlines | Griffon vs. The Coca Cola | Griffon vs. Delta Air Lines | Griffon vs. Aegean Airlines SA |
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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