Correlation Between Coca Cola and INTEL CDR
Can any of the company-specific risk be diversified away by investing in both Coca Cola and INTEL CDR 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 INTEL CDR 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 INTEL CDR, you can compare the effects of market volatilities on Coca Cola and INTEL CDR 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 INTEL CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and INTEL CDR.
Diversification Opportunities for Coca Cola and INTEL CDR
Excellent diversification
The 3 months correlation between Coca and INTEL is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola CDR and INTEL CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL CDR 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 INTEL CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL CDR has no effect on the direction of Coca Cola i.e., Coca Cola and INTEL CDR go up and down completely randomly.
Pair Corralation between Coca Cola and INTEL CDR
Assuming the 90 days trading horizon Coca Cola CDR is expected to under-perform the INTEL CDR. But the stock apears to be less risky and, when comparing its historical volatility, Coca Cola CDR is 2.73 times less risky than INTEL CDR. The stock trades about -0.07 of its potential returns per unit of risk. The INTEL CDR is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,192 in INTEL CDR on April 23, 2025 and sell it today you would earn a total of 150.00 from holding INTEL CDR or generate 12.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Coca Cola CDR vs. INTEL CDR
Performance |
Timeline |
Coca Cola CDR |
INTEL CDR |
Coca Cola and INTEL CDR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coca Cola and INTEL CDR
The main advantage of trading using opposite Coca Cola and INTEL CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, INTEL CDR 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 INTEL CDR will offset losses from the drop in INTEL CDR's long position.Coca Cola vs. T2 Metals Corp | Coca Cola vs. Verizon Communications CDR | Coca Cola vs. Hemisphere Energy | Coca Cola vs. Eddy Smart Home |
INTEL CDR vs. Hemisphere Energy | INTEL CDR vs. TGS Esports | INTEL CDR vs. Maple Leaf Foods | INTEL CDR vs. Computer Modelling Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |