Correlation Between Coca Cola and Penguen Gida
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Penguen Gida 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 Coca Cola and Penguen Gida into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coca Cola Icecek AS and Penguen Gida Sanayi, you can compare the effects of market volatilities on Coca Cola and Penguen Gida 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 Penguen Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Penguen Gida.
Diversification Opportunities for Coca Cola and Penguen Gida
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Coca and Penguen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola Icecek AS and Penguen Gida Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penguen Gida Sanayi 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 Coca Cola Icecek AS are associated (or correlated) with Penguen Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penguen Gida Sanayi has no effect on the direction of Coca Cola i.e., Coca Cola and Penguen Gida go up and down completely randomly.
Pair Corralation between Coca Cola and Penguen Gida
Assuming the 90 days trading horizon Coca Cola Icecek AS is expected to generate 13.27 times more return on investment than Penguen Gida. However, Coca Cola is 13.27 times more volatile than Penguen Gida Sanayi. It trades about 0.05 of its potential returns per unit of risk. Penguen Gida Sanayi is currently generating about 0.0 per unit of risk. If you would invest 1,869 in Coca Cola Icecek AS on September 23, 2024 and sell it today you would earn a total of 3,966 from holding Coca Cola Icecek AS or generate 212.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Coca Cola Icecek AS vs. Penguen Gida Sanayi
Performance |
Timeline |
Coca Cola Icecek |
Penguen Gida Sanayi |
Coca Cola and Penguen Gida Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coca Cola and Penguen Gida
The main advantage of trading using opposite Coca Cola and Penguen Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Penguen Gida 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 Penguen Gida will offset losses from the drop in Penguen Gida's long position.Coca Cola vs. Trabzon Liman Isletmeciligi | Coca Cola vs. Bayrak EBT Taban | Coca Cola vs. Alkim Kagit Sanayi | Coca Cola vs. Federal Mogul Izmit |
Penguen Gida vs. Trabzon Liman Isletmeciligi | Penguen Gida vs. Bayrak EBT Taban | Penguen Gida vs. Alkim Kagit Sanayi | Penguen Gida vs. Federal Mogul Izmit |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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