Correlation Between BIOGEN and Coca Cola
Specify exactly 2 symbols:
By analyzing existing cross correlation between BIOGEN INC and The Coca Cola, you can compare the effects of market volatilities on BIOGEN 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 BIOGEN with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIOGEN and Coca Cola.
Diversification Opportunities for BIOGEN and Coca Cola
Modest diversification
The 3 months correlation between BIOGEN and Coca is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding BIOGEN INC and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and BIOGEN 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 BIOGEN INC 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 BIOGEN i.e., BIOGEN and Coca Cola go up and down completely randomly.
Pair Corralation between BIOGEN and Coca Cola
Assuming the 90 days trading horizon BIOGEN INC is expected to generate 3.97 times more return on investment than Coca Cola. However, BIOGEN is 3.97 times more volatile than The Coca Cola. It trades about 0.02 of its potential returns per unit of risk. The Coca Cola is currently generating about -0.06 per unit of risk. If you would invest 6,566 in BIOGEN INC on September 1, 2024 and sell it today you would earn a total of 0.00 from holding BIOGEN INC or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
BIOGEN INC vs. The Coca Cola
Performance |
| Timeline |
| BIOGEN INC |
| Coca Cola |
BIOGEN and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIOGEN and Coca Cola
The main advantage of trading using opposite BIOGEN and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIOGEN 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.The idea behind BIOGEN INC and The Coca Cola pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Coca Cola vs. Coca Cola Femsa SAB | Coca Cola vs. Embotelladora Andina SA | Coca Cola vs. National Beverage Corp | Coca Cola vs. Embotelladora Andina SA |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |