Correlation Between Coca Cola and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Barclays Capital 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 Barclays Capital 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 Barclays Capital, you can compare the effects of market volatilities on Coca Cola and Barclays Capital 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 Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Barclays Capital.
Diversification Opportunities for Coca Cola and Barclays Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Barclays is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital 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 Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of Coca Cola i.e., Coca Cola and Barclays Capital go up and down completely randomly.
Pair Corralation between Coca Cola and Barclays Capital
If you would invest 6,335 in The Coca Cola on December 4, 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 | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
The Coca Cola vs. Barclays Capital
Performance |
Timeline |
Coca Cola |
Barclays Capital |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Coca Cola and Barclays Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coca Cola and Barclays Capital
The main advantage of trading using opposite Coca Cola and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital'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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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