Correlation Between Coca Cola and Transport International
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By analyzing existing cross correlation between The Coca Cola and Transport International Holdings, you can compare the effects of market volatilities on Coca Cola and Transport International 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 Coca Cola with a short position of Transport International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Transport International.
Diversification Opportunities for Coca Cola and Transport International
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Coca and Transport is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Transport International Holdin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transport International and Coca Cola 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 The Coca Cola are associated (or correlated) with Transport International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transport International has no effect on the direction of Coca Cola i.e., Coca Cola and Transport International go up and down completely randomly.
Pair Corralation between Coca Cola and Transport International
Assuming the 90 days trading horizon The Coca Cola is expected to under-perform the Transport International. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 1.42 times less risky than Transport International. The stock trades about -0.1 of its potential returns per unit of risk. The Transport International Holdings is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 95.00 in Transport International Holdings on September 26, 2024 and sell it today you would lose (1.00) from holding Transport International Holdings or give up 1.05% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Coca Cola vs. Transport International Holdin
Performance |
Timeline |
Coca Cola |
Transport International |
Coca Cola and Transport International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coca Cola and Transport International
The main advantage of trading using opposite Coca Cola and Transport International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Transport International 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 Transport International will offset losses from the drop in Transport International's long position.Coca Cola vs. Transport International Holdings | Coca Cola vs. ATOSS SOFTWARE | Coca Cola vs. Take Two Interactive Software | Coca Cola vs. GOLD ROAD RES |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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