Correlation Between PETROLEOS and Coca Cola
Specify exactly 2 symbols:
By analyzing existing cross correlation between PETROLEOS MEXICANOS 65 and The Coca Cola, you can compare the effects of market volatilities on PETROLEOS 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 PETROLEOS with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of PETROLEOS and Coca Cola.
Diversification Opportunities for PETROLEOS and Coca Cola
Weak diversification
The 3 months correlation between PETROLEOS and Coca is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding PETROLEOS MEXICANOS 65 and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and PETROLEOS 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 PETROLEOS MEXICANOS 65 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 PETROLEOS i.e., PETROLEOS and Coca Cola go up and down completely randomly.
Pair Corralation between PETROLEOS and Coca Cola
Assuming the 90 days trading horizon PETROLEOS MEXICANOS 65 is expected to under-perform the Coca Cola. In addition to that, PETROLEOS is 3.08 times more volatile than The Coca Cola. It trades about -0.09 of its total potential returns per unit of risk. The Coca Cola is currently generating about -0.26 per unit of volatility. If you would invest 6,730 in The Coca Cola on August 25, 2024 and sell it today you would lose (338.00) from holding The Coca Cola or give up 5.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
PETROLEOS MEXICANOS 65 vs. The Coca Cola
Performance |
| Timeline |
| PETROLEOS MEXICANOS |
| Coca Cola |
PETROLEOS and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PETROLEOS and Coca Cola
The main advantage of trading using opposite PETROLEOS and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PETROLEOS 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.| PETROLEOS vs. The Coca Cola | PETROLEOS vs. JPMorgan Chase Co | PETROLEOS vs. Dupont De Nemours | PETROLEOS vs. Alcoa Corp |
| Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. Eshallgo Class A | Coca Cola vs. Amtech Systems | Coca Cola vs. Gold Fields Ltd |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |