Correlation Between 360 Finance and Coca Cola
Can any of the company-specific risk be diversified away by investing in both 360 Finance and Coca Cola 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 360 Finance and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 360 Finance and Coca Cola HBC, you can compare the effects of market volatilities on 360 Finance and Coca Cola 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 360 Finance with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Finance and Coca Cola.
Diversification Opportunities for 360 Finance and Coca Cola
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 360 and Coca is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding 360 Finance and Coca Cola HBC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola HBC and 360 Finance 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 360 Finance are associated (or correlated) with Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola HBC has no effect on the direction of 360 Finance i.e., 360 Finance and Coca Cola go up and down completely randomly.
Pair Corralation between 360 Finance and Coca Cola
Given the investment horizon of 90 days 360 Finance is expected to generate 1.36 times less return on investment than Coca Cola. In addition to that, 360 Finance is 2.23 times more volatile than Coca Cola HBC. It trades about 0.06 of its total potential returns per unit of risk. Coca Cola HBC is currently generating about 0.17 per unit of volatility. If you would invest 2,290 in Coca Cola HBC on October 4, 2024 and sell it today you would earn a total of 773.00 from holding Coca Cola HBC or generate 33.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 26.61% |
Values | Daily Returns |
360 Finance vs. Coca Cola HBC
Performance |
Timeline |
360 Finance |
Coca Cola HBC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
360 Finance and Coca Cola Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 360 Finance and Coca Cola
The main advantage of trading using opposite 360 Finance and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Finance position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.360 Finance vs. Ryanair Holdings PLC | 360 Finance vs. Delta Air Lines | 360 Finance vs. Air Transport Services | 360 Finance vs. Allient |
Coca Cola vs. Carlsberg AS | Coca Cola vs. Bunzl plc | Coca Cola vs. Associated British Foods | Coca Cola vs. Kerry Group PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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