Correlation Between Oshidori International and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Oshidori International and Coca Cola 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 Oshidori International and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oshidori International Holdings and Coca Cola Consolidated, you can compare the effects of market volatilities on Oshidori International and Coca Cola 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 Oshidori International with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oshidori International and Coca Cola.
Diversification Opportunities for Oshidori International and Coca Cola
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oshidori and Coca is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Oshidori International Holding and Coca Cola Consolidated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Consolidated and Oshidori International 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 Oshidori International Holdings are associated (or correlated) with Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola Consolidated has no effect on the direction of Oshidori International i.e., Oshidori International and Coca Cola go up and down completely randomly.
Pair Corralation between Oshidori International and Coca Cola
Assuming the 90 days horizon Oshidori International Holdings is expected to generate 30.58 times more return on investment than Coca Cola. However, Oshidori International is 30.58 times more volatile than Coca Cola Consolidated. It trades about 0.06 of its potential returns per unit of risk. Coca Cola Consolidated is currently generating about 0.12 per unit of risk. If you would invest 0.06 in Oshidori International Holdings on August 31, 2024 and sell it today you would earn a total of 0.94 from holding Oshidori International Holdings or generate 1566.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oshidori International Holding vs. Coca Cola Consolidated
Performance |
| Timeline |
| Oshidori International |
| Coca Cola Consolidated |
Oshidori International and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oshidori International and Coca Cola
The main advantage of trading using opposite Oshidori International and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshidori International position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Oshidori International vs. Morgan Stanley | Oshidori International vs. Goldman Sachs Group | Oshidori International vs. HUMANA INC | Oshidori International vs. SCOR PK |
| Coca Cola vs. Vita Coco | Coca Cola vs. PepsiCo | Coca Cola vs. The Coca Cola | Coca Cola 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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