Correlation Between Coca Cola and Exchange Income
Can any of the company-specific risk be diversified away by investing in both Coca Cola and Exchange Income 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 Exchange Income 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 Exchange Income, you can compare the effects of market volatilities on Coca Cola and Exchange Income 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 Exchange Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Exchange Income.
Diversification Opportunities for Coca Cola and Exchange Income
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coca and Exchange is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Coca Cola and Exchange Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Income 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 Exchange Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Income has no effect on the direction of Coca Cola i.e., Coca Cola and Exchange Income go up and down completely randomly.
Pair Corralation between Coca Cola and Exchange Income
Allowing for the 90-day total investment horizon The Coca Cola is expected to under-perform the Exchange Income. But the stock apears to be less risky and, when comparing its historical volatility, The Coca Cola is 1.55 times less risky than Exchange Income. The stock trades about -0.03 of its potential returns per unit of risk. The Exchange Income is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 4,774 in Exchange Income on July 20, 2025 and sell it today you would earn a total of 783.00 from holding Exchange Income or generate 16.4% 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. Exchange Income
Performance |
| Timeline |
| Coca Cola |
| Exchange Income |
Coca Cola and Exchange Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coca Cola and Exchange Income
The main advantage of trading using opposite Coca Cola and Exchange Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Exchange Income 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 Exchange Income will offset losses from the drop in Exchange Income's long position.| Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper | Coca Cola vs. Monster Beverage Corp |
| Exchange Income vs. Air Canada | Exchange Income vs. Dream Industrial Real | Exchange Income vs. Superior Plus Corp | Exchange Income vs. Dream Office Real |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |