Correlation Between Coca Cola and HARLEY
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By analyzing existing cross correlation between The Coca Cola and HARLEY DAVIDSON INC, you can compare the effects of market volatilities on Coca Cola and HARLEY 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 HARLEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and HARLEY.
Diversification Opportunities for Coca Cola and HARLEY
Very weak diversification
The 3 months correlation between Coca and HARLEY is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and HARLEY DAVIDSON INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HARLEY DAVIDSON 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 HARLEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HARLEY DAVIDSON INC has no effect on the direction of Coca Cola i.e., Coca Cola and HARLEY go up and down completely randomly.
Pair Corralation between Coca Cola and HARLEY
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the HARLEY. In addition to that, Coca Cola is 2.7 times more volatile than HARLEY DAVIDSON INC. It trades about -0.16 of its total potential returns per unit of risk. HARLEY DAVIDSON INC is currently generating about -0.2 per unit of volatility. If you would invest 9,889 in HARLEY DAVIDSON INC on August 29, 2024 and sell it today you would lose (148.00) from holding HARLEY DAVIDSON INC or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. HARLEY DAVIDSON INC
Performance |
| Timeline |
| Coca Cola |
| HARLEY DAVIDSON INC |
Coca Cola and HARLEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and HARLEY
The main advantage of trading using opposite Coca Cola and HARLEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, HARLEY 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 HARLEY will offset losses from the drop in HARLEY'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 |
| HARLEY vs. The Coca Cola | HARLEY vs. JPMorgan Chase Co | HARLEY vs. Dupont De Nemours | HARLEY 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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