Correlation Between One Choice and Coca Cola

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both One Choice 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 One Choice and Coca Cola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Choice Blend and Coca-Cola, you can compare the effects of market volatilities on One Choice 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 One Choice with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Choice and Coca Cola.

Diversification Opportunities for One Choice and Coca Cola

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between AAAOX and Coca Cola is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding One Choice Blend and Coca-Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca-Cola and One Choice 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 One Choice Blend 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 has no effect on the direction of One Choice i.e., One Choice and Coca Cola go up and down completely randomly.

Pair Corralation between One Choice and Coca Cola

Assuming the 90 days horizon One Choice Blend is expected to under-perform the Coca Cola. But the mutual fund apears to be less risky and, when comparing its historical volatility, One Choice Blend is 2.17 times less risky than Coca Cola. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Coca-Cola is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,663  in Coca-Cola on June 29, 2022 and sell it today you would earn a total of  975.00  from holding Coca-Cola or generate 20.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy78.87%
ValuesDaily Returns

One Choice Blend  vs.  Coca-Cola

 Performance (%) 
       Timeline  
One Choice Blend 
AAAOX Performance
0 of 100
Over the last 90 days One Choice Blend has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, One Choice is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

AAAOX Price Channel

Coca-Cola 
Coca Cola Performance
0 of 100
Over the last 90 days Coca-Cola has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Coca Cola Price Channel

One Choice and Coca Cola Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with One Choice and Coca Cola

The main advantage of trading using opposite One Choice and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Choice 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.
One Choice vs. General Electric
The idea behind One Choice Blend and Coca-Cola 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.
Coca Cola vs. Kibush Capital Corp
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go