Correlation Between Coca Cola and Blackstone Alternative
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Blackstone Alternative 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 Blackstone Alternative into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Coca Cola and Blackstone Alternative Multi Strategy, you can compare the effects of market volatilities on Coca Cola and Blackstone Alternative 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 Blackstone Alternative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Blackstone Alternative.
Diversification Opportunities for Coca Cola and Blackstone Alternative
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coca and Blackstone is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Blackstone Alternative Multi S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Alternative 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 Blackstone Alternative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Alternative has no effect on the direction of Coca Cola i.e., Coca Cola and Blackstone Alternative go up and down completely randomly.
Pair Corralation between Coca Cola and Blackstone Alternative
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 9.7 times more return on investment than Blackstone Alternative. However, Coca Cola is 9.7 times more volatile than Blackstone Alternative Multi Strategy. It trades about 0.33 of its potential returns per unit of risk. Blackstone Alternative Multi Strategy is currently generating about -0.06 per unit of risk. If you would invest 6,335 in The Coca Cola on December 5, 2024 and sell it today you would earn a total of 684.00 from holding The Coca Cola or generate 10.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Coca Cola vs. Blackstone Alternative Multi S
Performance |
Timeline |
Coca Cola |
Blackstone Alternative |
Coca Cola and Blackstone Alternative Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coca Cola and Blackstone Alternative
The main advantage of trading using opposite Coca Cola and Blackstone Alternative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Blackstone Alternative 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 Blackstone Alternative will offset losses from the drop in Blackstone Alternative's long position.Coca Cola vs. Vita Coco | Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. PepsiCo | Coca Cola vs. Coca Cola Femsa SAB |
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.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |