Correlation Between Coca Cola and Viking
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By analyzing existing cross correlation between The Coca Cola and Viking Cruises Ltd, you can compare the effects of market volatilities on Coca Cola and Viking 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 Viking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Viking.
Diversification Opportunities for Coca Cola and Viking
Very good diversification
The 3 months correlation between Coca and Viking is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Viking Cruises Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viking Cruises 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 Viking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viking Cruises has no effect on the direction of Coca Cola i.e., Coca Cola and Viking go up and down completely randomly.
Pair Corralation between Coca Cola and Viking
Allowing for the 90-day total investment horizon Coca Cola is expected to generate 617.69 times less return on investment than Viking. But when comparing it to its historical volatility, The Coca Cola is 182.95 times less risky than Viking. It trades about 0.04 of its potential returns per unit of risk. Viking Cruises Ltd is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 9,884 in Viking Cruises Ltd on August 31, 2024 and sell it today you would earn a total of 113.00 from holding Viking Cruises Ltd or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 46.26% |
| Values | Daily Returns |
The Coca Cola vs. Viking Cruises Ltd
Performance |
| Timeline |
| Coca Cola |
| Viking Cruises |
Coca Cola and Viking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Viking
The main advantage of trading using opposite Coca Cola and Viking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Viking 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 Viking will offset losses from the drop in Viking'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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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