Correlation Between Graphic and Coca Cola
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By analyzing existing cross correlation between Graphic Packaging International and The Coca Cola, you can compare the effects of market volatilities on Graphic 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 Graphic with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graphic and Coca Cola.
Diversification Opportunities for Graphic and Coca Cola
Very weak diversification
The 3 months correlation between Graphic and Coca is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Graphic Packaging Internationa and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Graphic 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 Graphic Packaging International 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 Graphic i.e., Graphic and Coca Cola go up and down completely randomly.
Pair Corralation between Graphic and Coca Cola
Assuming the 90 days trading horizon Graphic Packaging International is expected to generate 136.02 times more return on investment than Coca Cola. However, Graphic is 136.02 times more volatile than The Coca Cola. It trades about 0.1 of its potential returns per unit of risk. The Coca Cola is currently generating about 0.02 per unit of risk. If you would invest 8,831 in Graphic Packaging International on August 29, 2024 and sell it today you would lose (86.00) from holding Graphic Packaging International or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.44% |
| Values | Daily Returns |
Graphic Packaging Internationa vs. The Coca Cola
Performance |
| Timeline |
| Graphic Packaging |
| Coca Cola |
Graphic and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graphic and Coca Cola
The main advantage of trading using opposite Graphic and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graphic 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.| Graphic vs. AEP TEX INC | Graphic vs. US BANK NATIONAL | Graphic vs. Nasdaq Inc | Graphic vs. Vertiv Holdings Co |
| Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola European Partners | Coca Cola vs. Capital Income Builder | Coca Cola vs. Direxion Daily FTSE |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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