Correlation Between Coca Cola and WALGREENS
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By analyzing existing cross correlation between The Coca Cola and WALGREENS BOOTS ALLIANCE, you can compare the effects of market volatilities on Coca Cola and WALGREENS 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 WALGREENS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and WALGREENS.
Diversification Opportunities for Coca Cola and WALGREENS
Weak diversification
The 3 months correlation between Coca and WALGREENS is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and WALGREENS BOOTS ALLIANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALGREENS BOOTS ALLIANCE 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 WALGREENS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALGREENS BOOTS ALLIANCE has no effect on the direction of Coca Cola i.e., Coca Cola and WALGREENS go up and down completely randomly.
Pair Corralation between Coca Cola and WALGREENS
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.66 times more return on investment than WALGREENS. However, Coca Cola is 1.66 times more volatile than WALGREENS BOOTS ALLIANCE. It trades about 0.02 of its potential returns per unit of risk. WALGREENS BOOTS ALLIANCE is currently generating about 0.0 per unit of risk. If you would invest 6,016 in The Coca Cola on August 24, 2024 and sell it today you would earn a total of 376.00 from holding The Coca Cola or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
The Coca Cola vs. WALGREENS BOOTS ALLIANCE
Performance |
| Timeline |
| Coca Cola |
| WALGREENS BOOTS ALLIANCE |
Coca Cola and WALGREENS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and WALGREENS
The main advantage of trading using opposite Coca Cola and WALGREENS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, WALGREENS 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 WALGREENS will offset losses from the drop in WALGREENS's long position.| Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. Eshallgo Class A | Coca Cola vs. Amtech Systems | Coca Cola vs. Gold Fields Ltd |
| WALGREENS vs. Kite Realty Group | WALGREENS vs. Nasdaq Inc | WALGREENS vs. Western Acquisition Ventures | WALGREENS vs. Freedom Holding Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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