Correlation Between Coca Cola and PETRO
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By analyzing existing cross correlation between The Coca Cola and PETRO CDA 7 percent, you can compare the effects of market volatilities on Coca Cola and PETRO 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 PETRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and PETRO.
Diversification Opportunities for Coca Cola and PETRO
Very good diversification
The 3 months correlation between Coca and PETRO is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and PETRO CDA 7 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETRO CDA 7 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 PETRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETRO CDA 7 has no effect on the direction of Coca Cola i.e., Coca Cola and PETRO go up and down completely randomly.
Pair Corralation between Coca Cola and PETRO
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.73 times more return on investment than PETRO. However, The Coca Cola is 1.36 times less risky than PETRO. It trades about 0.02 of its potential returns per unit of risk. PETRO CDA 7 percent is currently generating about 0.0 per unit of risk. If you would invest 6,018 in The Coca Cola on September 2, 2024 and sell it today you would earn a total of 390.00 from holding The Coca Cola or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.07% |
| Values | Daily Returns |
The Coca Cola vs. PETRO CDA 7 percent
Performance |
| Timeline |
| Coca Cola |
| PETRO CDA 7 |
Coca Cola and PETRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and PETRO
The main advantage of trading using opposite Coca Cola and PETRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, PETRO 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 PETRO will offset losses from the drop in PETRO'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 |
| PETRO vs. Perseus Mining Limited | PETRO vs. Life Time Group | PETRO vs. HF Sinclair Corp | PETRO vs. Mangazeya Mining |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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