Correlation Between INTEL and Coca Cola
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By analyzing existing cross correlation between INTEL P 49 and The Coca Cola, you can compare the effects of market volatilities on INTEL 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 INTEL with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTEL and Coca Cola.
Diversification Opportunities for INTEL and Coca Cola
Good diversification
The 3 months correlation between INTEL and Coca is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding INTEL P 49 and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and INTEL 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 INTEL P 49 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 INTEL i.e., INTEL and Coca Cola go up and down completely randomly.
Pair Corralation between INTEL and Coca Cola
Assuming the 90 days trading horizon INTEL P 49 is expected to generate 1.31 times more return on investment than Coca Cola. However, INTEL is 1.31 times more volatile than The Coca Cola. It trades about 0.13 of its potential returns per unit of risk. The Coca Cola is currently generating about -0.1 per unit of risk. If you would invest 8,477 in INTEL P 49 on August 31, 2024 and sell it today you would earn a total of 243.00 from holding INTEL P 49 or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
INTEL P 49 vs. The Coca Cola
Performance |
| Timeline |
| INTEL P 49 |
| Coca Cola |
INTEL and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTEL and Coca Cola
The main advantage of trading using opposite INTEL and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTEL 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.| INTEL vs. Eastman Kodak Co | INTEL vs. Sun Country Airlines | INTEL vs. Procter Gamble | INTEL vs. TFI International |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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