Correlation Between Coca Cola and TOTAL
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By analyzing existing cross correlation between The Coca Cola and TOTAL CAPITAL INTERNATIONAL, you can compare the effects of market volatilities on Coca Cola and TOTAL 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 TOTAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and TOTAL.
Diversification Opportunities for Coca Cola and TOTAL
Very poor diversification
The 3 months correlation between Coca and TOTAL is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and TOTAL CAPITAL INTERNATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOTAL CAPITAL INTERN 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 TOTAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOTAL CAPITAL INTERN has no effect on the direction of Coca Cola i.e., Coca Cola and TOTAL go up and down completely randomly.
Pair Corralation between Coca Cola and TOTAL
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the TOTAL. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 2.24 times less risky than TOTAL. The stock trades about -0.09 of its potential returns per unit of risk. The TOTAL CAPITAL INTERNATIONAL is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 6,764 in TOTAL CAPITAL INTERNATIONAL on August 30, 2024 and sell it today you would earn a total of 526.00 from holding TOTAL CAPITAL INTERNATIONAL or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 73.91% |
| Values | Daily Returns |
The Coca Cola vs. TOTAL CAPITAL INTERNATIONAL
Performance |
| Timeline |
| Coca Cola |
| TOTAL CAPITAL INTERN |
Coca Cola and TOTAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and TOTAL
The main advantage of trading using opposite Coca Cola and TOTAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, TOTAL 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 TOTAL will offset losses from the drop in TOTAL'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 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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