Correlation Between Coca Cola and BARRICK
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By analyzing existing cross correlation between The Coca Cola and BARRICK NORTH AMER, you can compare the effects of market volatilities on Coca Cola and BARRICK 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 BARRICK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and BARRICK.
Diversification Opportunities for Coca Cola and BARRICK
Modest diversification
The 3 months correlation between Coca and BARRICK is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and BARRICK NORTH AMER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BARRICK NORTH AMER 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 BARRICK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BARRICK NORTH AMER has no effect on the direction of Coca Cola i.e., Coca Cola and BARRICK go up and down completely randomly.
Pair Corralation between Coca Cola and BARRICK
Allowing for the 90-day total investment horizon The Coca Cola is expected to generate 1.93 times more return on investment than BARRICK. However, Coca Cola is 1.93 times more volatile than BARRICK NORTH AMER. It trades about 0.01 of its potential returns per unit of risk. BARRICK NORTH AMER is currently generating about -0.06 per unit of risk. If you would invest 7,012 in The Coca Cola on December 5, 2024 and sell it today you would earn a total of 13.00 from holding The Coca Cola or generate 0.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 88.62% |
Values | Daily Returns |
The Coca Cola vs. BARRICK NORTH AMER
Performance |
Timeline |
Coca Cola |
BARRICK NORTH AMER |
Coca Cola and BARRICK Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coca Cola and BARRICK
The main advantage of trading using opposite Coca Cola and BARRICK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, BARRICK 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 BARRICK will offset losses from the drop in BARRICK'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 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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