Correlation Between Haci Omer and Coca Cola

Can any of the company-specific risk be diversified away by investing in both Haci Omer 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 Haci Omer and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Haci Omer Sabanci and Coca Cola Icecek AS, you can compare the effects of market volatilities on Haci Omer 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 Haci Omer with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haci Omer and Coca Cola.

Diversification Opportunities for Haci Omer and Coca Cola

0.29

Correlation Coefficient

Haci Omer  Coca Cola

Modest diversification

The 3 months correlation between Haci and Coca is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Haci Omer Sabanci and Coca Cola Icecek AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola Icecek and Haci Omer 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 Haci Omer Sabanci 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 Icecek has no effect on the direction of Haci Omer i.e., Haci Omer and Coca Cola go up and down completely randomly.

Pair Corralation between Haci Omer and Coca Cola

Assuming the 90 days trading horizon Haci Omer Sabanci is expected to under-perform the Coca Cola. In addition to that, Haci Omer is 1.07 times more volatile than Coca Cola Icecek AS. It trades about -0.07 of its total potential returns per unit of risk. Coca Cola Icecek AS is currently generating about -0.06 per unit of volatility. If you would invest  6,080  in Coca Cola Icecek AS on December 29, 2024 and sell it today you would lose (735.00) from holding Coca Cola Icecek AS or give up 12.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Haci Omer Sabanci  vs.  Coca Cola Icecek AS

Haci Omer Sabanci

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haci Omer Sabanci has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Coca Cola Icecek

Risk-Adjusted Performance

Very Weak

Over the last 90 days Coca Cola Icecek AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Haci Omer and Coca Cola

The main advantage of trading using opposite Haci Omer and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haci Omer 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.

The idea behind Haci Omer Sabanci and Coca Cola Icecek AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.