Correlation Between Sycamore Entmt and Coca Cola

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

Diversification Opportunities for Sycamore Entmt and Coca Cola

-0.4
  Correlation Coefficient

Very good diversification

The 3 months correlation between Sycamore and Coca is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sycamore Entmt Grp and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and Sycamore Entmt 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 Sycamore Entmt Grp 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 Sycamore Entmt i.e., Sycamore Entmt and Coca Cola go up and down completely randomly.

Pair Corralation between Sycamore Entmt and Coca Cola

Given the investment horizon of 90 days Sycamore Entmt Grp is expected to generate 17.63 times more return on investment than Coca Cola. However, Sycamore Entmt is 17.63 times more volatile than The Coca Cola. It trades about 0.09 of its potential returns per unit of risk. The Coca Cola is currently generating about 0.1 per unit of risk. If you would invest  0.04  in Sycamore Entmt Grp on September 6, 2025 and sell it today you would earn a total of  0.00  from holding Sycamore Entmt Grp or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Sycamore Entmt Grp  vs.  The Coca Cola

 Performance 
       Timeline  
Sycamore Entmt Grp 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Sycamore Entmt Grp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak technical and fundamental indicators, Sycamore Entmt demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Coca Cola 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in The Coca Cola are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Coca Cola is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Sycamore Entmt and Coca Cola Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sycamore Entmt and Coca Cola

The main advantage of trading using opposite Sycamore Entmt and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sycamore Entmt 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 Sycamore Entmt Grp and The 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.
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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