Correlation Between Coca Cola and V
Can any of the company-specific risk be diversified away by investing in both Coca Cola and V 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 V 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 V Group, you can compare the effects of market volatilities on Coca Cola and V 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 V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and V.
Diversification Opportunities for Coca Cola and V
Pay attention - limited upside
The 3 months correlation between Coca and V is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola Femsa SAB and V Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V 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 Coca Cola Femsa SAB are associated (or correlated) with V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V Group has no effect on the direction of Coca Cola i.e., Coca Cola and V go up and down completely randomly.
Pair Corralation between Coca Cola and V
If you would invest 7,869 in Coca Cola Femsa SAB on September 20, 2024 and sell it today you would earn a total of 48.00 from holding Coca Cola Femsa SAB or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Coca Cola Femsa SAB vs. V Group
Performance |
| Timeline |
| Coca Cola Femsa |
| V Group |
Coca Cola and V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and V
The main advantage of trading using opposite Coca Cola and V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, V 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 V will offset losses from the drop in V's 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 |
| V vs. National Beverage Corp | V vs. Celsius Holdings | V vs. Monster Beverage Corp | V vs. Coca Cola Femsa SAB |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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