Correlation Between Coca Cola and PROCTER
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By analyzing existing cross correlation between The Coca Cola and PROCTER GAMBLE 285, you can compare the effects of market volatilities on Coca Cola and PROCTER 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 PROCTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and PROCTER.
Diversification Opportunities for Coca Cola and PROCTER
Poor diversification
The 3 months correlation between Coca and PROCTER is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and PROCTER GAMBLE 285 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROCTER GAMBLE 285 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 PROCTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROCTER GAMBLE 285 has no effect on the direction of Coca Cola i.e., Coca Cola and PROCTER go up and down completely randomly.
Pair Corralation between Coca Cola and PROCTER
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 2.11 times more return on investment than PROCTER. However, Coca Cola is 2.11 times more volatile than PROCTER GAMBLE 285. It trades about 0.04 of its potential returns per unit of risk. PROCTER GAMBLE 285 is currently generating about 0.07 per unit of risk. If you would invest 6,202 in The Coca Cola on August 30, 2024 and sell it today you would earn a total of 241.00 from holding The Coca Cola or generate 3.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.62% |
| Values | Daily Returns |
The Coca Cola vs. PROCTER GAMBLE 285
Performance |
| Timeline |
| Coca Cola |
| PROCTER GAMBLE 285 |
Coca Cola and PROCTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and PROCTER
The main advantage of trading using opposite Coca Cola and PROCTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, PROCTER 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 PROCTER will offset losses from the drop in PROCTER's long position.| Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. PepsiCo | Coca Cola vs. Coca Cola Femsa SAB |
| PROCTER vs. East Africa Metals | PROCTER vs. Griffon | PROCTER vs. WEC Energy Group | PROCTER vs. Black Hills |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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