| KO Stock | | | USD 64.08 0.13 0.20% |
The current 90-days correlation between Coca Cola and Coca Cola Femsa SAB is 0.03 (i.e., Significant diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Coca Cola moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if The Coca Cola moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
Coca Cola Correlation With Market
Average diversification
The correlation between The Coca Cola and DJI is 0.11 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and DJI in the same portfolio, assuming nothing else is changed.
Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in The Coca Cola. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in persons.
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations | | High negative correlations |
Risk-Adjusted IndicatorsThere is a big difference between Coca Stock performing well and Coca Cola Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Coca Cola's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.