Correlation Between WILLIS and Coca Cola
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By analyzing existing cross correlation between WILLIS NORTH AMER and The Coca Cola, you can compare the effects of market volatilities on WILLIS 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 WILLIS with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of WILLIS and Coca Cola.
Diversification Opportunities for WILLIS and Coca Cola
Poor diversification
The 3 months correlation between WILLIS and Coca is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding WILLIS NORTH AMER and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and WILLIS 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 WILLIS NORTH AMER 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 WILLIS i.e., WILLIS and Coca Cola go up and down completely randomly.
Pair Corralation between WILLIS and Coca Cola
Assuming the 90 days trading horizon WILLIS NORTH AMER is expected to under-perform the Coca Cola. But the bond apears to be less risky and, when comparing its historical volatility, WILLIS NORTH AMER is 1.48 times less risky than Coca Cola. The bond trades about -0.03 of its potential returns per unit of risk. The The Coca Cola is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5,735 in The Coca Cola on August 31, 2024 and sell it today you would earn a total of 708.00 from holding The Coca Cola or generate 12.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.59% |
| Values | Daily Returns |
WILLIS NORTH AMER vs. The Coca Cola
Performance |
| Timeline |
| WILLIS NORTH AMER |
| Coca Cola |
WILLIS and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WILLIS and Coca Cola
The main advantage of trading using opposite WILLIS and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WILLIS 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.| WILLIS vs. Primoris Services | WILLIS vs. The Coca Cola | WILLIS vs. Oatly Group AB | WILLIS vs. Jacobs Solutions |
| 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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