Correlation Between Transportadora and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Transportadora 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 Transportadora and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transportadora de Gas and The Coca Cola, you can compare the effects of market volatilities on Transportadora 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 Transportadora with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transportadora and Coca Cola.
Diversification Opportunities for Transportadora and Coca Cola
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Transportadora and Coca is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Transportadora de Gas and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Transportadora 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 Transportadora de Gas 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 has no effect on the direction of Transportadora i.e., Transportadora and Coca Cola go up and down completely randomly.
Pair Corralation between Transportadora and Coca Cola
Assuming the 90 days trading horizon Transportadora de Gas is expected to generate 2.0 times more return on investment than Coca Cola. However, Transportadora is 2.0 times more volatile than The Coca Cola. It trades about 0.47 of its potential returns per unit of risk. The Coca Cola is currently generating about -0.22 per unit of risk. If you would invest 520,000 in Transportadora de Gas on September 1, 2024 and sell it today you would earn a total of 140,000 from holding Transportadora de Gas or generate 26.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Transportadora de Gas vs. The Coca Cola
Performance |
| Timeline |
| Transportadora de Gas |
| Coca Cola |
Transportadora and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transportadora and Coca Cola
The main advantage of trading using opposite Transportadora and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transportadora 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.| Transportadora vs. American Express Co | Transportadora vs. United States Steel | Transportadora vs. Pfizer Inc | Transportadora vs. Distribuidora de Gas |
| Coca Cola vs. Edesa Holding SA | Coca Cola vs. Longvie SA | Coca Cola vs. Vista Energy, SAB | Coca Cola vs. American Express Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |