Correlation Between EXPRESS and Coca Cola
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By analyzing existing cross correlation between EXPRESS SCRIPTS HLDG and The Coca Cola, you can compare the effects of market volatilities on EXPRESS 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 EXPRESS with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXPRESS and Coca Cola.
Diversification Opportunities for EXPRESS and Coca Cola
Poor diversification
The 3 months correlation between EXPRESS and Coca is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding EXPRESS SCRIPTS HLDG and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and EXPRESS 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 EXPRESS SCRIPTS HLDG 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 EXPRESS i.e., EXPRESS and Coca Cola go up and down completely randomly.
Pair Corralation between EXPRESS and Coca Cola
Assuming the 90 days trading horizon EXPRESS is expected to generate 3.55 times less return on investment than Coca Cola. In addition to that, EXPRESS is 1.05 times more volatile than The Coca Cola. It trades about 0.01 of its total potential returns per unit of risk. The Coca Cola is currently generating about 0.04 per unit of volatility. If you would invest 5,722 in The Coca Cola on August 31, 2024 and sell it today you would earn a total of 686.00 from holding The Coca Cola or generate 11.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.25% |
| Values | Daily Returns |
EXPRESS SCRIPTS HLDG vs. The Coca Cola
Performance |
| Timeline |
| EXPRESS SCRIPTS HLDG |
| Coca Cola |
EXPRESS and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXPRESS and Coca Cola
The main advantage of trading using opposite EXPRESS and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXPRESS 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.| EXPRESS vs. Mill City Ventures | EXPRESS vs. VirnetX Holding Corp | EXPRESS vs. Glacier Bancorp | EXPRESS vs. Chiba Bank Ltd |
| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. RLJ Lodging Trust | Coca Cola vs. Aquagold International | Coca Cola vs. Stepstone Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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