Correlation Between PROCTER and Coca Cola
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By analyzing existing cross correlation between PROCTER GAMBLE 285 and The Coca Cola, you can compare the effects of market volatilities on PROCTER 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 PROCTER with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROCTER and Coca Cola.
Diversification Opportunities for PROCTER and Coca Cola
Poor diversification
The 3 months correlation between PROCTER and Coca is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding PROCTER GAMBLE 285 and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and PROCTER 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 PROCTER GAMBLE 285 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 PROCTER i.e., PROCTER and Coca Cola go up and down completely randomly.
Pair Corralation between PROCTER and Coca Cola
Assuming the 90 days trading horizon PROCTER GAMBLE 285 is expected to generate 0.52 times more return on investment than Coca Cola. However, PROCTER GAMBLE 285 is 1.93 times less risky than Coca Cola. It trades about 0.11 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 9,655 in PROCTER GAMBLE 285 on August 30, 2024 and sell it today you would earn a total of 98.00 from holding PROCTER GAMBLE 285 or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PROCTER GAMBLE 285 vs. The Coca Cola
Performance |
| Timeline |
| PROCTER GAMBLE 285 |
| Coca Cola |
PROCTER and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PROCTER and Coca Cola
The main advantage of trading using opposite PROCTER and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROCTER 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.| PROCTER vs. East Africa Metals | PROCTER vs. Griffon | PROCTER vs. WEC Energy Group | PROCTER vs. Black Hills |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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