Correlation Between Calibre Mining and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Calibre Mining and Coca Cola at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Calibre Mining and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calibre Mining Corp and Coca Cola Consolidated, you can compare the effects of market volatilities on Calibre Mining 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 Calibre Mining with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calibre Mining and Coca Cola.
Diversification Opportunities for Calibre Mining and Coca Cola
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calibre and Coca is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Calibre Mining Corp and Coca Cola Consolidated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Consolidated and Calibre Mining 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 Calibre Mining Corp 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 Consolidated has no effect on the direction of Calibre Mining i.e., Calibre Mining and Coca Cola go up and down completely randomly.
Pair Corralation between Calibre Mining and Coca Cola
Assuming the 90 days trading horizon Calibre Mining Corp is expected to generate 1.23 times more return on investment than Coca Cola. However, Calibre Mining is 1.23 times more volatile than Coca Cola Consolidated. It trades about 0.32 of its potential returns per unit of risk. Coca Cola Consolidated is currently generating about 0.29 per unit of risk. If you would invest 142.00 in Calibre Mining Corp on October 25, 2024 and sell it today you would earn a total of 23.00 from holding Calibre Mining Corp or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calibre Mining Corp vs. Coca Cola Consolidated
Performance |
| Timeline |
| Calibre Mining Corp |
| Coca Cola Consolidated |
Calibre Mining and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calibre Mining and Coca Cola
The main advantage of trading using opposite Calibre Mining and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calibre Mining 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.| Calibre Mining vs. CARSALESCOM | Calibre Mining vs. Yuexiu Transport Infrastructure | Calibre Mining vs. GEAR4MUSIC LS 10 | Calibre Mining vs. CarsalesCom |
| Coca Cola vs. Heidelberg Materials AG | Coca Cola vs. CENTURIA OFFICE REIT | Coca Cola vs. VULCAN MATERIALS | Coca Cola vs. alstria office REIT AG |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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