Correlation Between FEDEX and Coca Cola
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By analyzing existing cross correlation between FEDEX P 42 and The Coca Cola, you can compare the effects of market volatilities on FEDEX 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 FEDEX with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEDEX and Coca Cola.
Diversification Opportunities for FEDEX and Coca Cola
Modest diversification
The 3 months correlation between FEDEX and Coca is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding FEDEX P 42 and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and FEDEX 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 FEDEX P 42 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 FEDEX i.e., FEDEX and Coca Cola go up and down completely randomly.
Pair Corralation between FEDEX and Coca Cola
Assuming the 90 days trading horizon FEDEX P 42 is expected to under-perform the Coca Cola. But the bond apears to be less risky and, when comparing its historical volatility, FEDEX P 42 is 1.38 times less risky than Coca Cola. The bond trades about -0.18 of its potential returns per unit of risk. The The Coca Cola is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 6,556 in The Coca Cola on August 30, 2024 and sell it today you would lose (113.00) from holding The Coca Cola or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
FEDEX P 42 vs. The Coca Cola
Performance |
| Timeline |
| FEDEX P 42 |
| Coca Cola |
FEDEX and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEDEX and Coca Cola
The main advantage of trading using opposite FEDEX and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEDEX 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.| FEDEX vs. United Airlines Holdings | FEDEX vs. Ziff Davis | FEDEX vs. Ituran Location and | FEDEX vs. Skillful Craftsman Education |
| Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. PepsiCo |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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