Correlation Between Coca Cola and KEYBANK
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By analyzing existing cross correlation between The Coca Cola and KEYBANK NATL ASSN, you can compare the effects of market volatilities on Coca Cola and KEYBANK 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 KEYBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and KEYBANK.
Diversification Opportunities for Coca Cola and KEYBANK
Good diversification
The 3 months correlation between Coca and KEYBANK is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and KEYBANK NATL ASSN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEYBANK NATL ASSN 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 KEYBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEYBANK NATL ASSN has no effect on the direction of Coca Cola i.e., Coca Cola and KEYBANK go up and down completely randomly.
Pair Corralation between Coca Cola and KEYBANK
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.6 times more return on investment than KEYBANK. However, The Coca Cola is 1.67 times less risky than KEYBANK. It trades about -0.22 of its potential returns per unit of risk. KEYBANK NATL ASSN is currently generating about -0.21 per unit of risk. If you would invest 7,251 in The Coca Cola on August 31, 2024 and sell it today you would lose (808.00) from holding The Coca Cola or give up 11.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
The Coca Cola vs. KEYBANK NATL ASSN
Performance |
| Timeline |
| Coca Cola |
| KEYBANK NATL ASSN |
Coca Cola and KEYBANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and KEYBANK
The main advantage of trading using opposite Coca Cola and KEYBANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, KEYBANK 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 KEYBANK will offset losses from the drop in KEYBANK's long position.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. RLJ Lodging Trust | Coca Cola vs. Aquagold International | Coca Cola vs. Stepstone Group |
| KEYBANK vs. Meli Hotels International | KEYBANK vs. Planet Fitness | KEYBANK vs. Marine Products | KEYBANK vs. Playtech plc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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