Correlation Between G Willi and Coca Cola
Can any of the company-specific risk be diversified away by investing in both G Willi 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 G Willi and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Willi Food International and Coca Cola Femsa SAB, you can compare the effects of market volatilities on G Willi 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 G Willi with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Willi and Coca Cola.
Diversification Opportunities for G Willi and Coca Cola
Excellent diversification
The 3 months correlation between WILC and Coca is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding G Willi Food International and Coca Cola Femsa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Femsa and G Willi 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 G Willi Food International 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 Femsa has no effect on the direction of G Willi i.e., G Willi and Coca Cola go up and down completely randomly.
Pair Corralation between G Willi and Coca Cola
Given the investment horizon of 90 days G Willi is expected to generate 1.23 times less return on investment than Coca Cola. In addition to that, G Willi is 1.68 times more volatile than Coca Cola Femsa SAB. It trades about 0.02 of its total potential returns per unit of risk. Coca Cola Femsa SAB is currently generating about 0.04 per unit of volatility. If you would invest 6,140 in Coca Cola Femsa SAB on August 30, 2024 and sell it today you would earn a total of 1,793 from holding Coca Cola Femsa SAB or generate 29.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
G Willi Food International vs. Coca Cola Femsa SAB
Performance |
| Timeline |
| G Willi Food |
| Coca Cola Femsa |
G Willi and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Willi and Coca Cola
The main advantage of trading using opposite G Willi and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Willi 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.| G Willi vs. Hf Foods Group | G Willi vs. Innovative Food Hldg | G Willi vs. Calavo Growers | G Willi vs. The Chefs Warehouse |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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