Correlation Between Coca Cola and KROGER
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By analyzing existing cross correlation between The Coca Cola and KROGER 37 percent, you can compare the effects of market volatilities on Coca Cola and KROGER 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 KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and KROGER.
Diversification Opportunities for Coca Cola and KROGER
Average diversification
The 3 months correlation between Coca and KROGER is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and KROGER 37 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER 37 percent 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 KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER 37 percent has no effect on the direction of Coca Cola i.e., Coca Cola and KROGER go up and down completely randomly.
Pair Corralation between Coca Cola and KROGER
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.82 times more return on investment than KROGER. However, Coca Cola is 1.82 times more volatile than KROGER 37 percent. It trades about 0.02 of its potential returns per unit of risk. KROGER 37 percent is currently generating about -0.01 per unit of risk. If you would invest 6,019 in The Coca Cola on September 3, 2024 and sell it today you would earn a total of 389.00 from holding The Coca Cola or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
The Coca Cola vs. KROGER 37 percent
Performance |
| Timeline |
| Coca Cola |
| KROGER 37 percent |
Coca Cola and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and KROGER
The main advantage of trading using opposite Coca Cola and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER'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 |
| KROGER vs. Sligro Food Group | KROGER vs. Fevertree Drinks Plc | KROGER vs. National Beverage Corp | KROGER vs. Fomento Economico Mexicano |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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