Correlation Between HARLEY and Coca Cola
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By analyzing existing cross correlation between HARLEY DAVIDSON INC and The Coca Cola, you can compare the effects of market volatilities on HARLEY 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 HARLEY with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of HARLEY and Coca Cola.
Diversification Opportunities for HARLEY and Coca Cola
Modest diversification
The 3 months correlation between HARLEY and Coca is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding HARLEY DAVIDSON 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 HARLEY 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 HARLEY DAVIDSON 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 HARLEY i.e., HARLEY and Coca Cola go up and down completely randomly.
Pair Corralation between HARLEY and Coca Cola
Assuming the 90 days trading horizon HARLEY DAVIDSON INC is expected to under-perform the Coca Cola. But the bond apears to be less risky and, when comparing its historical volatility, HARLEY DAVIDSON INC is 2.19 times less risky than Coca Cola. The bond trades about -0.16 of its potential returns per unit of risk. The The Coca Cola is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 6,482 in The Coca Cola on September 1, 2024 and sell it today you would lose (74.00) from holding The Coca Cola or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HARLEY DAVIDSON INC vs. The Coca Cola
Performance |
| Timeline |
| HARLEY DAVIDSON INC |
| Coca Cola |
HARLEY and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HARLEY and Coca Cola
The main advantage of trading using opposite HARLEY and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HARLEY 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 HARLEY DAVIDSON 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. Vita Coco | Coca Cola vs. Coca Cola Femsa SAB | Coca Cola vs. Embotelladora Andina SA | Coca Cola vs. National Beverage Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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