Correlation Between Coca Cola and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Anglo Asian 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 Anglo Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Coca Cola and Anglo Asian Mining, you can compare the effects of market volatilities on Coca Cola and Anglo Asian 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 Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Anglo Asian.
Diversification Opportunities for Coca Cola and Anglo Asian
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coca and Anglo is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining 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 Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Coca Cola i.e., Coca Cola and Anglo Asian go up and down completely randomly.
Pair Corralation between Coca Cola and Anglo Asian
Allowing for the 90-day total investment horizon Coca Cola is expected to generate 1.03 times less return on investment than Anglo Asian. But when comparing it to its historical volatility, The Coca Cola is 2.59 times less risky than Anglo Asian. It trades about 0.06 of its potential returns per unit of risk. Anglo Asian Mining is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Anglo Asian Mining on August 14, 2025 and sell it today you would earn a total of 5.00 from holding Anglo Asian Mining or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Coca Cola vs. Anglo Asian Mining
Performance |
| Timeline |
| Coca Cola |
| Anglo Asian Mining |
Coca Cola and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Anglo Asian
The main advantage of trading using opposite Coca Cola and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Coca Cola vs. Procter Gamble | Coca Cola vs. Sitka Gold Corp | Coca Cola vs. MSCI ACWI exAUCONSUMER | Coca Cola vs. Sycamore Entmt Grp |
| Anglo Asian vs. First Mining Gold | Anglo Asian vs. Gambier Gold Corp | Anglo Asian vs. Founders Metals | Anglo Asian vs. Jaguar Mining |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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