Correlation Between Coca Cola and Silvercorp Metals
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Silvercorp Metals 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 Silvercorp Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coca Cola CDR and Silvercorp Metals, you can compare the effects of market volatilities on Coca Cola and Silvercorp Metals 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 Silvercorp Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Silvercorp Metals.
Diversification Opportunities for Coca Cola and Silvercorp Metals
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coca and Silvercorp is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola CDR and Silvercorp Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercorp Metals 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 Coca Cola CDR are associated (or correlated) with Silvercorp Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercorp Metals has no effect on the direction of Coca Cola i.e., Coca Cola and Silvercorp Metals go up and down completely randomly.
Pair Corralation between Coca Cola and Silvercorp Metals
Assuming the 90 days trading horizon Coca Cola CDR is expected to under-perform the Silvercorp Metals. But the stock apears to be less risky and, when comparing its historical volatility, Coca Cola CDR is 4.05 times less risky than Silvercorp Metals. The stock trades about -0.08 of its potential returns per unit of risk. The Silvercorp Metals is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 634.00 in Silvercorp Metals on July 17, 2025 and sell it today you would earn a total of 327.00 from holding Silvercorp Metals or generate 51.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Coca Cola CDR vs. Silvercorp Metals
Performance |
| Timeline |
| Coca Cola CDR |
| Silvercorp Metals |
Coca Cola and Silvercorp Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Silvercorp Metals
The main advantage of trading using opposite Coca Cola and Silvercorp Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Silvercorp Metals 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 Silvercorp Metals will offset losses from the drop in Silvercorp Metals' long position.| Coca Cola vs. Toronto Dominion Bank | Coca Cola vs. Perseus Mining | Coca Cola vs. Altair Resources | Coca Cola vs. Laurentian Bank |
| Silvercorp Metals vs. Silvercorp Metals | Silvercorp Metals vs. Dolly Varden Silver | Silvercorp Metals vs. Aya Gold Silver | Silvercorp Metals vs. Endeavour Silver 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 the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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