Correlation Between 63858SAA7 and Coca Cola
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By analyzing existing cross correlation between BANK OF AMERICA and The Coca Cola, you can compare the effects of market volatilities on 63858SAA7 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 63858SAA7 with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of 63858SAA7 and Coca Cola.
Diversification Opportunities for 63858SAA7 and Coca Cola
Modest diversification
The 3 months correlation between 63858SAA7 and Coca is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding BANK OF AMERICA and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and 63858SAA7 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 BANK OF AMERICA 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 63858SAA7 i.e., 63858SAA7 and Coca Cola go up and down completely randomly.
Pair Corralation between 63858SAA7 and Coca Cola
Assuming the 90 days trading horizon BANK OF AMERICA is expected to generate 2.17 times more return on investment than Coca Cola. However, 63858SAA7 is 2.17 times more volatile than The Coca Cola. It trades about 0.58 of its potential returns per unit of risk. The Coca Cola is currently generating about -0.08 per unit of risk. If you would invest 9,993 in BANK OF AMERICA on September 4, 2024 and sell it today you would earn a total of 328.00 from holding BANK OF AMERICA or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 15.0% |
| Values | Daily Returns |
BANK OF AMERICA vs. The Coca Cola
Performance |
| Timeline |
| BANK OF AMERICA |
| Coca Cola |
63858SAA7 and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 63858SAA7 and Coca Cola
The main advantage of trading using opposite 63858SAA7 and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 63858SAA7 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.| 63858SAA7 vs. The Joint Corp | 63858SAA7 vs. Hafnia Limited | 63858SAA7 vs. KNOT Offshore Partners | 63858SAA7 vs. Teleflex Incorporated |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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