Correlation Between Coca Cola and SENMED
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By analyzing existing cross correlation between The Coca Cola and SENMED 2927 01 NOV 51, you can compare the effects of market volatilities on Coca Cola and SENMED 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 SENMED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and SENMED.
Diversification Opportunities for Coca Cola and SENMED
Very good diversification
The 3 months correlation between Coca and SENMED is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and SENMED 2927 01 NOV 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENMED 2927 01 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 SENMED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENMED 2927 01 has no effect on the direction of Coca Cola i.e., Coca Cola and SENMED go up and down completely randomly.
Pair Corralation between Coca Cola and SENMED
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 0.5 times more return on investment than SENMED. However, The Coca Cola is 2.02 times less risky than SENMED. It trades about -0.18 of its potential returns per unit of risk. SENMED 2927 01 NOV 51 is currently generating about -0.33 per unit of risk. If you would invest 7,126 in The Coca Cola on August 28, 2024 and sell it today you would lose (688.00) from holding The Coca Cola or give up 9.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 20.63% |
| Values | Daily Returns |
The Coca Cola vs. SENMED 2927 01 NOV 51
Performance |
| Timeline |
| Coca Cola |
| SENMED 2927 01 |
Coca Cola and SENMED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and SENMED
The main advantage of trading using opposite Coca Cola and SENMED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, SENMED 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 SENMED will offset losses from the drop in SENMED'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 |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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