Correlation Between Weiss Korea and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Weiss Korea 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 Weiss Korea and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weiss Korea Opportunity and Coca Cola Co, you can compare the effects of market volatilities on Weiss Korea 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 Weiss Korea with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weiss Korea and Coca Cola.
Diversification Opportunities for Weiss Korea and Coca Cola
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Weiss and Coca is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Weiss Korea Opportunity and Coca Cola Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Weiss Korea 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 Weiss Korea Opportunity 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 Weiss Korea i.e., Weiss Korea and Coca Cola go up and down completely randomly.
Pair Corralation between Weiss Korea and Coca Cola
Assuming the 90 days trading horizon Weiss Korea is expected to generate 16.88 times less return on investment than Coca Cola. In addition to that, Weiss Korea is 1.49 times more volatile than Coca Cola Co. It trades about 0.0 of its total potential returns per unit of risk. Coca Cola Co is currently generating about 0.02 per unit of volatility. If you would invest 6,036 in Coca Cola Co on August 26, 2024 and sell it today you would earn a total of 304.00 from holding Coca Cola Co or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weiss Korea Opportunity vs. Coca Cola Co
Performance |
| Timeline |
| Weiss Korea Opportunity |
| Coca Cola |
Weiss Korea and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weiss Korea and Coca Cola
The main advantage of trading using opposite Weiss Korea and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weiss Korea 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.| Weiss Korea vs. Catalyst Media Group | Weiss Korea vs. Oncimmune Holdings plc | Weiss Korea vs. Invesco Health Care | Weiss Korea vs. Coor Service Management |
| Coca Cola vs. GreenX Metals | Coca Cola vs. Ameriprise Financial | Coca Cola vs. Ally Financial | Coca Cola vs. Central Asia Metals |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |