Correlation Between Coca Cola and NORDSTROM
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By analyzing existing cross correlation between The Coca Cola and NORDSTROM INC 695, you can compare the effects of market volatilities on Coca Cola and NORDSTROM 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 NORDSTROM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and NORDSTROM.
Diversification Opportunities for Coca Cola and NORDSTROM
Modest diversification
The 3 months correlation between Coca and NORDSTROM is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and NORDSTROM INC 695 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDSTROM INC 695 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 NORDSTROM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDSTROM INC 695 has no effect on the direction of Coca Cola i.e., Coca Cola and NORDSTROM go up and down completely randomly.
Pair Corralation between Coca Cola and NORDSTROM
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.0 times more return on investment than NORDSTROM. However, The Coca Cola is 1.0 times less risky than NORDSTROM. It trades about 0.05 of its potential returns per unit of risk. NORDSTROM INC 695 is currently generating about 0.01 per unit of risk. If you would invest 5,598 in The Coca Cola on November 19, 2024 and sell it today you would earn a total of 1,289 from holding The Coca Cola or generate 23.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
The Coca Cola vs. NORDSTROM INC 695
Performance |
| Timeline |
| Coca Cola |
| NORDSTROM INC 695 |
Coca Cola and NORDSTROM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and NORDSTROM
The main advantage of trading using opposite Coca Cola and NORDSTROM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, NORDSTROM 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 NORDSTROM will offset losses from the drop in NORDSTROM'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 |
| NORDSTROM vs. AEP TEX INC | NORDSTROM vs. Bank of America | NORDSTROM vs. Dupont De Nemours | NORDSTROM vs. Pfizer Inc |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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