Correlation Between Coca Cola and VIACOM
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By analyzing existing cross correlation between The Coca Cola and VIACOM INC NEW, you can compare the effects of market volatilities on Coca Cola and VIACOM 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 VIACOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and VIACOM.
Diversification Opportunities for Coca Cola and VIACOM
Very good diversification
The 3 months correlation between Coca and VIACOM is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and VIACOM INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIACOM INC NEW 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 VIACOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIACOM INC NEW has no effect on the direction of Coca Cola i.e., Coca Cola and VIACOM go up and down completely randomly.
Pair Corralation between Coca Cola and VIACOM
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the VIACOM. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 7.87 times less risky than VIACOM. The stock trades about -0.17 of its potential returns per unit of risk. The VIACOM INC NEW is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 6,625 in VIACOM INC NEW on August 27, 2024 and sell it today you would earn a total of 750.00 from holding VIACOM INC NEW or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
The Coca Cola vs. VIACOM INC NEW
Performance |
| Timeline |
| Coca Cola |
| VIACOM INC NEW |
Coca Cola and VIACOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and VIACOM
The main advantage of trading using opposite Coca Cola and VIACOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, VIACOM 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 VIACOM will offset losses from the drop in VIACOM'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 |
| VIACOM vs. Mativ Holdings | VIACOM vs. JBG SMITH Properties | VIACOM vs. Ecovyst | VIACOM vs. China Clean Energy |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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