Correlation Between Coca Cola and Greene Concepts
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Greene Concepts at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Coca Cola and Greene Concepts into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coca Cola Femsa SAB and Greene Concepts, you can compare the effects of market volatilities on Coca Cola and Greene Concepts 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 Greene Concepts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Greene Concepts.
Diversification Opportunities for Coca Cola and Greene Concepts
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coca and Greene is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola Femsa SAB and Greene Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greene Concepts 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 Coca Cola Femsa SAB are associated (or correlated) with Greene Concepts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greene Concepts has no effect on the direction of Coca Cola i.e., Coca Cola and Greene Concepts go up and down completely randomly.
Pair Corralation between Coca Cola and Greene Concepts
Considering the 90-day investment horizon Coca Cola Femsa SAB is expected to generate 0.17 times more return on investment than Greene Concepts. However, Coca Cola Femsa SAB is 5.83 times less risky than Greene Concepts. It trades about 0.0 of its potential returns per unit of risk. Greene Concepts is currently generating about -0.01 per unit of risk. If you would invest 8,373 in Coca Cola Femsa SAB on August 31, 2024 and sell it today you would lose (410.00) from holding Coca Cola Femsa SAB or give up 4.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Coca Cola Femsa SAB vs. Greene Concepts
Performance |
| Timeline |
| Coca Cola Femsa |
| Greene Concepts |
Coca Cola and Greene Concepts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Greene Concepts
The main advantage of trading using opposite Coca Cola and Greene Concepts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Greene Concepts 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 Greene Concepts will offset losses from the drop in Greene Concepts' long position.| Coca Cola vs. Fomento Economico Mexicano | Coca Cola vs. Grupo Televisa SAB | Coca Cola vs. Grupo Aeroportuario del | Coca Cola vs. Grupo Aeroportuario del |
| Greene Concepts vs. High Performance Beverages | Greene Concepts vs. V Group | Greene Concepts vs. Fbec Worldwide | Greene Concepts vs. Hiru Corporation |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |