Correlation Between X FAB and Coca Cola
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By analyzing existing cross correlation between X FAB Silicon Foundries and The Coca Cola, you can compare the effects of market volatilities on X FAB 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 X FAB with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of X FAB and Coca Cola.
Diversification Opportunities for X FAB and Coca Cola
Very weak diversification
The 3 months correlation between XFB and Coca is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding X FAB Silicon Foundries and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and X FAB 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 X FAB Silicon Foundries 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 X FAB i.e., X FAB and Coca Cola go up and down completely randomly.
Pair Corralation between X FAB and Coca Cola
Assuming the 90 days trading horizon X FAB Silicon Foundries is expected to under-perform the Coca Cola. In addition to that, X FAB is 3.02 times more volatile than The Coca Cola. It trades about -0.02 of its total potential returns per unit of risk. The Coca Cola is currently generating about 0.04 per unit of volatility. If you would invest 5,191 in The Coca Cola on October 13, 2024 and sell it today you would earn a total of 755.00 from holding The Coca Cola or generate 14.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
X FAB Silicon Foundries vs. The Coca Cola
Performance |
| Timeline |
| X FAB Silicon |
| Coca Cola |
X FAB and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with X FAB and Coca Cola
The main advantage of trading using opposite X FAB and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if X FAB 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.| X FAB vs. Pembina Pipeline Corp | X FAB vs. IMAGIN MEDICAL INC | X FAB vs. CREO MEDICAL GRP | X FAB vs. ENVVENO MEDICAL DL 00001 |
| Coca Cola vs. PULSION Medical Systems | Coca Cola vs. Advanced Medical Solutions | Coca Cola vs. PEPTONIC MEDICAL | Coca Cola vs. Peijia Medical Limited |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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