Correlation Between 70137WAG3 and Coca Cola
Specify exactly 2 symbols:
By analyzing existing cross correlation between US70137WAG33 and The Coca Cola, you can compare the effects of market volatilities on 70137WAG3 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 70137WAG3 with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of 70137WAG3 and Coca Cola.
Diversification Opportunities for 70137WAG3 and Coca Cola
Very poor diversification
The 3 months correlation between 70137WAG3 and Coca is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding US70137WAG33 and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and 70137WAG3 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 US70137WAG33 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 70137WAG3 i.e., 70137WAG3 and Coca Cola go up and down completely randomly.
Pair Corralation between 70137WAG3 and Coca Cola
Assuming the 90 days trading horizon US70137WAG33 is expected to generate 0.35 times more return on investment than Coca Cola. However, US70137WAG33 is 2.87 times less risky than Coca Cola. It trades about 0.1 of its potential returns per unit of risk. The Coca Cola is currently generating about -0.09 per unit of risk. If you would invest 9,335 in US70137WAG33 on August 30, 2024 and sell it today you would earn a total of 49.00 from holding US70137WAG33 or generate 0.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 82.61% |
| Values | Daily Returns |
US70137WAG33 vs. The Coca Cola
Performance |
| Timeline |
| US70137WAG33 |
| Coca Cola |
70137WAG3 and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 70137WAG3 and Coca Cola
The main advantage of trading using opposite 70137WAG3 and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 70137WAG3 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.| 70137WAG3 vs. Integral Ad Science | 70137WAG3 vs. Playtika Holding Corp | 70137WAG3 vs. Fidus Investment Corp | 70137WAG3 vs. CapitaLand Investment Limited |
| Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. PepsiCo | Coca Cola vs. Coca Cola Femsa SAB |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |