Correlation Between Coca Cola and TRAVELERS
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Coca Cola and TRAVELERS INS GROUP, you can compare the effects of market volatilities on Coca Cola and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and TRAVELERS.
Diversification Opportunities for Coca Cola and TRAVELERS
Very good diversification
The 3 months correlation between Coca and TRAVELERS is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and TRAVELERS INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INS GROUP 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INS GROUP has no effect on the direction of Coca Cola i.e., Coca Cola and TRAVELERS go up and down completely randomly.
Pair Corralation between Coca Cola and TRAVELERS
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.5 times more return on investment than TRAVELERS. However, Coca Cola is 1.5 times more volatile than TRAVELERS INS GROUP. It trades about 0.04 of its potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about 0.01 per unit of risk. If you would invest 6,202 in The Coca Cola on August 29, 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 Against |
| Strength | Insignificant |
| Accuracy | 48.41% |
| Values | Daily Returns |
The Coca Cola vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| Coca Cola |
| TRAVELERS INS GROUP |
Coca Cola and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and TRAVELERS
The main advantage of trading using opposite Coca Cola and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS's long position.| Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola European Partners | Coca Cola vs. Capital Income Builder | Coca Cola vs. Direxion Daily FTSE |
| TRAVELERS vs. AEP TEX INC | TRAVELERS vs. US BANK NATIONAL | TRAVELERS vs. Nasdaq Inc | TRAVELERS vs. Vertiv Holdings Co |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |