Correlation Between INTERNATIONAL and Coca Cola
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By analyzing existing cross correlation between INTERNATIONAL BUSINESS MACHS and The Coca Cola, you can compare the effects of market volatilities on INTERNATIONAL 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 INTERNATIONAL with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERNATIONAL and Coca Cola.
Diversification Opportunities for INTERNATIONAL and Coca Cola
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INTERNATIONAL and Coca is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding INTERNATIONAL BUSINESS MACHS and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and INTERNATIONAL 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 INTERNATIONAL BUSINESS MACHS 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 INTERNATIONAL i.e., INTERNATIONAL and Coca Cola go up and down completely randomly.
Pair Corralation between INTERNATIONAL and Coca Cola
Assuming the 90 days trading horizon INTERNATIONAL BUSINESS MACHS is expected to under-perform the Coca Cola. In addition to that, INTERNATIONAL is 4.85 times more volatile than The Coca Cola. It trades about -0.2 of its total potential returns per unit of risk. The Coca Cola is currently generating about -0.16 per unit of volatility. If you would invest 6,667 in The Coca Cola on August 29, 2024 and sell it today you would lose (212.00) from holding The Coca Cola or give up 3.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 72.73% |
| Values | Daily Returns |
INTERNATIONAL BUSINESS MACHS vs. The Coca Cola
Performance |
| Timeline |
| INTERNATIONAL BUSINESS |
| Coca Cola |
INTERNATIONAL and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERNATIONAL and Coca Cola
The main advantage of trading using opposite INTERNATIONAL and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERNATIONAL 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.| INTERNATIONAL vs. VirnetX Holding Corp | INTERNATIONAL vs. Qualys Inc | INTERNATIONAL vs. Kaltura | INTERNATIONAL vs. NETGEAR |
| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper |
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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