Correlation Between Coca Cola and HOLOGIC
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By analyzing existing cross correlation between The Coca Cola and HOLOGIC INC 325, you can compare the effects of market volatilities on Coca Cola and HOLOGIC 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 HOLOGIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and HOLOGIC.
Diversification Opportunities for Coca Cola and HOLOGIC
Poor diversification
The 3 months correlation between Coca and HOLOGIC is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and HOLOGIC INC 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOLOGIC INC 325 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 HOLOGIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOLOGIC INC 325 has no effect on the direction of Coca Cola i.e., Coca Cola and HOLOGIC go up and down completely randomly.
Pair Corralation between Coca Cola and HOLOGIC
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.32 times more return on investment than HOLOGIC. However, Coca Cola is 1.32 times more volatile than HOLOGIC INC 325. It trades about 0.06 of its potential returns per unit of risk. HOLOGIC INC 325 is currently generating about -0.01 per unit of risk. If you would invest 5,700 in The Coca Cola on September 2, 2024 and sell it today you would earn a total of 708.00 from holding The Coca Cola or generate 12.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.37% |
| Values | Daily Returns |
The Coca Cola vs. HOLOGIC INC 325
Performance |
| Timeline |
| Coca Cola |
| HOLOGIC INC 325 |
Coca Cola and HOLOGIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and HOLOGIC
The main advantage of trading using opposite Coca Cola and HOLOGIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, HOLOGIC 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 HOLOGIC will offset losses from the drop in HOLOGIC'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 |
| HOLOGIC vs. Diageo PLC ADR | HOLOGIC vs. Anheuser Busch Inbev | HOLOGIC vs. Universal | HOLOGIC vs. Albertsons Companies |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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