Correlation Between ENN Energy and Coca Cola
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By analyzing existing cross correlation between ENN Energy Holdings and The Coca Cola, you can compare the effects of market volatilities on ENN Energy 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 ENN Energy with a short position of Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENN Energy and Coca Cola.
Diversification Opportunities for ENN Energy and Coca Cola
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ENN and Coca is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding ENN Energy Holdings and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola and ENN Energy 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 ENN Energy Holdings 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 ENN Energy i.e., ENN Energy and Coca Cola go up and down completely randomly.
Pair Corralation between ENN Energy and Coca Cola
Assuming the 90 days trading horizon ENN Energy Holdings is expected to generate 4.1 times more return on investment than Coca Cola. However, ENN Energy is 4.1 times more volatile than The Coca Cola. It trades about 0.12 of its potential returns per unit of risk. The Coca Cola is currently generating about -0.08 per unit of risk. If you would invest 524.00 in ENN Energy Holdings on September 24, 2024 and sell it today you would earn a total of 141.00 from holding ENN Energy Holdings or generate 26.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ENN Energy Holdings vs. The Coca Cola
Performance |
Timeline |
ENN Energy Holdings |
Coca Cola |
ENN Energy and Coca Cola Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ENN Energy and Coca Cola
The main advantage of trading using opposite ENN Energy and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENN Energy 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.ENN Energy vs. CenterPoint Energy | ENN Energy vs. Snam SpA | ENN Energy vs. Atmos Energy | ENN Energy vs. NiSource |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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