Correlation Between MARRIOTT and Coca Cola
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By analyzing existing cross correlation between MARRIOTT INTERNATIONAL INC and The Coca Cola, you can compare the effects of market volatilities on MARRIOTT 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 MARRIOTT with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of MARRIOTT and Coca Cola.
Diversification Opportunities for MARRIOTT and Coca Cola
Average diversification
The 3 months correlation between MARRIOTT and Coca is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding MARRIOTT INTERNATIONAL 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 MARRIOTT 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 MARRIOTT INTERNATIONAL 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 MARRIOTT i.e., MARRIOTT and Coca Cola go up and down completely randomly.
Pair Corralation between MARRIOTT and Coca Cola
Assuming the 90 days trading horizon MARRIOTT INTERNATIONAL INC is expected to generate 0.15 times more return on investment than Coca Cola. However, MARRIOTT INTERNATIONAL INC is 6.75 times less risky than Coca Cola. It trades about -0.04 of its potential returns per unit of risk. The Coca Cola is currently generating about -0.12 per unit of risk. If you would invest 10,038 in MARRIOTT INTERNATIONAL INC on August 31, 2024 and sell it today you would lose (10.00) from holding MARRIOTT INTERNATIONAL INC or give up 0.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
MARRIOTT INTERNATIONAL INC vs. The Coca Cola
Performance |
| Timeline |
| MARRIOTT INTERNATIONAL |
| Coca Cola |
MARRIOTT and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MARRIOTT and Coca Cola
The main advantage of trading using opposite MARRIOTT and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MARRIOTT 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.| MARRIOTT vs. Akanda Corp | MARRIOTT vs. LithiumBank Resources Corp | MARRIOTT vs. Commonwealth Bank of | MARRIOTT vs. KeyCorp |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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