Correlation Between Coca Cola and Kolibri Global
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Kolibri Global 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 Kolibri Global 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 Kolibri Global Energy, you can compare the effects of market volatilities on Coca Cola and Kolibri Global 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 Kolibri Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Kolibri Global.
Diversification Opportunities for Coca Cola and Kolibri Global
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Coca and Kolibri is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Kolibri Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kolibri Global Energy 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 Kolibri Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kolibri Global Energy has no effect on the direction of Coca Cola i.e., Coca Cola and Kolibri Global go up and down completely randomly.
Pair Corralation between Coca Cola and Kolibri Global
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the Kolibri Global. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 4.55 times less risky than Kolibri Global. The stock trades about -0.07 of its potential returns per unit of risk. The Kolibri Global Energy is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 573.00 in Kolibri Global Energy on October 26, 2024 and sell it today you would earn a total of 174.00 from holding Kolibri Global Energy or generate 30.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Coca Cola vs. Kolibri Global Energy
Performance |
Timeline |
Coca Cola |
Kolibri Global Energy |
Coca Cola and Kolibri Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coca Cola and Kolibri Global
The main advantage of trading using opposite Coca Cola and Kolibri Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Kolibri Global 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 Kolibri Global will offset losses from the drop in Kolibri Global's long position.Coca Cola vs. PepsiCo | Coca Cola vs. Vita Coco | Coca Cola vs. Aquagold International | Coca Cola vs. Thrivent High Yield |
Kolibri Global vs. Games Workshop Group | Kolibri Global vs. Hochschild Mining PLC | Kolibri Global vs. Motorsport Gaming Us | Kolibri Global vs. Bilibili |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Transaction History View history of all your transactions and understand their impact on performance | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Fundamental Analysis View fundamental data based on most recent published financial statements |