Correlation Between Coca Cola and Admie Holding

Can any of the company-specific risk be diversified away by investing in both Coca Cola and Admie Holding 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 Admie Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coca Cola HBC AG and Admie Holding SA, you can compare the effects of market volatilities on Coca Cola and Admie Holding 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 Admie Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coca Cola and Admie Holding.

Diversification Opportunities for Coca Cola and Admie Holding

0.77

Correlation Coefficient

Coca Cola  Admie Holding

Poor diversification

The 3 months correlation between Coca and Admie is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Coca Cola HBC AG and Admie Holding SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Admie Holding SA 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 HBC AG are associated (or correlated) with Admie Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Admie Holding SA has no effect on the direction of Coca Cola i.e., Coca Cola and Admie Holding go up and down completely randomly.

Pair Corralation between Coca Cola and Admie Holding

Assuming the 90 days trading horizon Coca Cola HBC AG is expected to under-perform the Admie Holding. But the stock apears to be less risky and, when comparing its historical volatility, Coca Cola HBC AG is 1.2 times less risky than Admie Holding. The stock trades about -0.17 of its potential returns per unit of risk. The Admie Holding SA is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  317.00  in Admie Holding SA on August 4, 2025 and sell it today you would lose (18.00) from holding Admie Holding SA or give up 5.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Coca Cola HBC AG  vs.  Admie Holding SA

Coca Cola HBC

Risk-Adjusted Performance

Weakest

Over the last 90 days Coca Cola HBC AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Admie Holding SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Admie Holding SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Admie Holding is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Coca Cola and Admie Holding

The main advantage of trading using opposite Coca Cola and Admie Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coca Cola position performs unexpectedly, Admie Holding 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 Admie Holding will offset losses from the drop in Admie Holding's long position.

The idea behind Coca Cola HBC AG and Admie Holding SA 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.