Correlation Between Ardagh and Coca Cola
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By analyzing existing cross correlation between Ardagh Packaging Finance and The Coca Cola, you can compare the effects of market volatilities on Ardagh 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 Ardagh with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ardagh and Coca Cola.
Diversification Opportunities for Ardagh and Coca Cola
Good diversification
The 3 months correlation between Ardagh and Coca is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ardagh Packaging Finance and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Ardagh 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 Ardagh Packaging Finance 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 Ardagh i.e., Ardagh and Coca Cola go up and down completely randomly.
Pair Corralation between Ardagh and Coca Cola
Assuming the 90 days trading horizon Ardagh is expected to generate 4.27 times less return on investment than Coca Cola. In addition to that, Ardagh is 4.39 times more volatile than The Coca Cola. It trades about 0.0 of its total potential returns per unit of risk. The Coca Cola is currently generating about 0.08 per unit of volatility. If you would invest 5,641 in The Coca Cola on January 16, 2025 and sell it today you would earn a total of 1,517 from holding The Coca Cola or generate 26.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.26% |
| Values | Daily Returns |
Ardagh Packaging Finance vs. The Coca Cola
Performance |
| Timeline |
| Ardagh Packaging Finance |
| Coca Cola |
Ardagh and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ardagh and Coca Cola
The main advantage of trading using opposite Ardagh and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ardagh 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.| Ardagh vs. Emerson Electric | Ardagh vs. Everspin Technologies | Ardagh vs. Plexus Corp | Ardagh vs. Aviat Networks |
| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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