Correlation Between Coca Cola and SUNOCO
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By analyzing existing cross correlation between The Coca Cola and SUNOCO LOGISTICS PARTNERS, you can compare the effects of market volatilities on Coca Cola and SUNOCO 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 SUNOCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and SUNOCO.
Diversification Opportunities for Coca Cola and SUNOCO
Poor diversification
The 3 months correlation between Coca and SUNOCO is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and SUNOCO LOGISTICS PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNOCO LOGISTICS PARTNERS 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 SUNOCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNOCO LOGISTICS PARTNERS has no effect on the direction of Coca Cola i.e., Coca Cola and SUNOCO go up and down completely randomly.
Pair Corralation between Coca Cola and SUNOCO
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the SUNOCO. In addition to that, Coca Cola is 4.16 times more volatile than SUNOCO LOGISTICS PARTNERS. It trades about -0.1 of its total potential returns per unit of risk. SUNOCO LOGISTICS PARTNERS is currently generating about 0.02 per unit of volatility. If you would invest 10,090 in SUNOCO LOGISTICS PARTNERS on August 31, 2024 and sell it today you would earn a total of 6.00 from holding SUNOCO LOGISTICS PARTNERS or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 82.61% |
| Values | Daily Returns |
The Coca Cola vs. SUNOCO LOGISTICS PARTNERS
Performance |
| Timeline |
| Coca Cola |
| SUNOCO LOGISTICS PARTNERS |
Coca Cola and SUNOCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and SUNOCO
The main advantage of trading using opposite Coca Cola and SUNOCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, SUNOCO 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 SUNOCO will offset losses from the drop in SUNOCO's long position.| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. RLJ Lodging Trust | Coca Cola vs. Aquagold International | Coca Cola vs. Stepstone Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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