Stock.Coca-Cola Consolidated
| co*kEStock | USD910.1019.752.22% |
Coca Cola appears to be very steady, given 3 months investment horizon. Coca-Cola Consolidated secures Sharpe Ratio (or Efficiency) of 0.36, which signifies that the company had 0.36% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. By analyzing Coca-Cola Consolidated technical indicators you can presently evaluate if the expected return of 0.52% is justified by implied risk. Please makes use of Coca Cola's mean deviation of 1.11, and Risk Adjusted Performance of 0.2927 to double-check if our risk estimates are consistent with your expectations. Key technical indicators related to Coca Cola's volatility include:
30 Days Market Risk | Chance of Distress | 30 Days Economic Sensitivity |
Coca Cola Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Coca daily returns, and it is calculated using variance and standard deviation. We also use Coca's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Coca Cola volatility.
Coca |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Coca Cola can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Coca Cola at lower prices. For example, an investor can purchase Coca stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Coca Cola's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Coca Stock
0.79 | KO | Coca-Cola | Fiscal Quarter End 31st of December 2023 | PairCorr |
0.77 | FIZZ | National Beverage Corp | Fiscal Quarter End 31st of January 2024 | PairCorr |
0.67 | KDP | Keurig Dr Pepper | Fiscal Quarter End 31st of December 2023 | PairCorr |
0.94 | KOF | Coca-Cola Femsa SAB | Fiscal Quarter End 31st of December 2023 | PairCorr |
0.63 | MNST | Monster Beverage Corp | Fiscal Quarter End 31st of December 2023 | PairCorr |
Moving against Coca Stock
0.86 | JSDA | Jones Soda | Fiscal Quarter End 31st of December 2023 | PairCorr |
0.66 | BJ | BJs Wholesale Club | Fiscal Quarter End 31st of January 2024 | PairCorr |
0.65 | CELH | Celsius Holdings | Fiscal Quarter End 31st of December 2023 | PairCorr |
0.48 | REED | Reeds Inc | PairCorr | |
0.41 | BRFH | Barfresh Food Group | Fiscal Quarter End 31st of December 2023 | PairCorr |
Coca Cola Market Sensitivity And Downside Risk
Coca Cola's beta coefficient measures the volatility of Coca stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Coca stock's returns against your selected market. In other words, Coca Cola's beta of 0.75 provides an investor with an approximation of how much risk Coca Cola stock can potentially add to one of your existing portfolios.
Coca Cola Consolidated has relatively low volatility with skewness of -0.39 and kurtosis of 2.03. However, we advise all investors to independently investigate Coca Cola Consolidated to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Coca Cola's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Coca Cola's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
3 Months Beta |Analyze Coca-Cola Consolidated Demand Trend
Check current 90 days Coca Cola correlation with market (NYSE Composite)
Coca Beta |
Coca standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 1.45 |
It is essential to understand the difference between upside risk (as represented by Coca Cola's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Coca Cola's daily returns or price. Since the actual investment returns on holding a position in coca stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Coca Cola.
Coca-Cola Consolidated Stock Volatility Analysis
Volatility refers to the frequency at which Coca Cola stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Coca Cola's price changes. Investors will then calculate the volatility of Coca Cola's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Coca Cola's volatility:
Historical Volatility
This type of stock volatility measures Coca Cola's fluctuations based on previous trends. It's commonly used to predict Coca Cola's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.
Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Coca Cola's current market price. This means that the stock will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Coca Cola's to be redeemed at a future date.
Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Coca-Cola Consolidated Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
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Coca Cola Projected Return Density Against Market
Given the investment horizon of 90 days Coca Cola has a beta of 0.7494 suggesting as returns on the market go up, Coca Cola average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Coca Cola Consolidated will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Coca Cola or Beverages sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Coca Cola's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Coca stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.4291, implying that it can generate a 0.43 percent excess return over NYSE Composite after adjusting for the inherited market risk (beta).
Predicted Return Density
Coca Cola's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how coca stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.
What Drives a Coca Cola Price Volatility?
Several factors can influence a stock's market volatility:
Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.
Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.
The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.
Coca Cola Stock Risk Measures
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Coca Cola or Beverages sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Coca Cola's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Coca stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision. Given the investment horizon of 90 days the coefficient of variation of Coca Cola is 278.57. The daily returns are distributed with a variance of 2.11 and standard deviation of 1.45. The mean deviation of Coca Cola Consolidated is currently at 1.12. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.81
α | Alpha over NYSE Composite | 0.43 | |
β | Beta against NYSE Composite | 0.75 | |
σ | Overall volatility | 1.45 | |
Ir | Information ratio | 0.28 |
Coca Cola Stock Return Volatility
Coca Cola historical daily return volatility represents how much of Coca Cola stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 1.452% risk (volatility on return distribution) over the 90 days horizon. By contrast, NYSE Composite accepts 0.8111% volatility on return distribution over the 90 days horizon.
Performance
| Timeline |
About Coca Cola Volatility
Volatility is a rate at which the price of Coca Cola or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Coca Cola may increase or decrease. In other words, similar to Coca's beta indicator, it measures the risk of Coca Cola and helps estimate the fluctuations that may happen in a short period of time. So if prices of Coca Cola fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
| Last Reported | Projected for 2023 | ||
| Market Capitalization | 4.8B | 3.8B |
Coca Cola's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Coca Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Coca Cola's price varies over time.
3 ways to utilize Coca Cola's volatility to invest better
Higher Coca Cola's stock volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Coca-Cola Consolidated stock is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Coca-Cola Consolidated stock volatility can provide helpful information for making investment decisions in the following ways:
- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Coca-Cola Consolidated investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Coca Cola's stock can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Coca Cola's stock relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.
Coca Cola Investment Opportunity
Coca Cola Consolidated has a volatility of 1.45 and is 1.79 times more volatile than NYSE Composite. 12 of all equities and portfolios are less risky than Coca Cola. Compared to the overall equity markets, volatility of historical daily returns of Coca Cola Consolidated is lower than 12 () of all global equities and portfolios over the last 90 days. Use Coca Cola Consolidated to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Coca Cola to be traded at $1092.12 in 90 days.
Very weak diversification
The correlation between Coca-Cola Consolidated and NYA is 0.42 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Coca-Cola Consolidated and NYA in the same portfolio, assuming nothing else is changed.
Coca Cola Additional Risk Indicators
The analysis of Coca Cola's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Coca Cola's investment and either accepting that risk or mitigating it. Along with some common measures of Coca Cola stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.2927 | |||
| Market Risk Adjusted Performance | 0.6853 | |||
| Mean Deviation | 1.11 | |||
| Semi Deviation | 0.8181 | |||
| Downside Deviation | 1.36 | |||
| Coefficient Of Variation | 279.45 | |||
| Standard Deviation | 1.44 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with hom*ogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Coca Cola Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Coca Cola as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Coca Cola's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Coca Cola's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Coca Cola Consolidated.
When determining whether Coca-Cola Consolidated is a strong investment it is important to analyze Coca Cola's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Coca Cola's future performance. For an informed investment choice regarding Coca Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Coca Cola Consolidated. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in gross domestic product.
You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Complementary Tools for Coca Stock analysis
When running Coca Cola's price analysis, check to measure Coca Cola's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Coca Cola is operating at the current time. Most of Coca Cola's value examination focuses on studying past and present price action to predict the probability of Coca Cola's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Coca Cola's price. Additionally, you may evaluate how the addition of Coca Cola to your portfolios can decrease your overall portfolio volatility.
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Is Coca Cola's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Coca Cola. If investors know Coca will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Coca Cola listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.22) | Dividend Share 1.75 | Earnings Share 47.96 | Revenue Per Share 703.616 | Quarterly Revenue Growth 0.051 |
The market value of Coca-Cola Consolidated is measured differently than its book value, which is the value of Coca that is recorded on the company's balance sheet. Investors also form their own opinion of Coca Cola's value that differs from its market value or its book value, called intrinsic value, which is Coca Cola's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Coca Cola's market value can be influenced by many factors that don't directly affect Coca Cola's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Coca Cola's value and its price as these two are different measures arrived at by different means. Investors typically determine if Coca Cola is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Coca Cola's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
With expertise in financial analysis and market trends, I'm deeply familiar with stock evaluations and performance metrics. The article you provided delves into various aspects of Coca-Cola Consolidated's stock performance, volatility, risk measures, and market sensitivity. Let's break down the concepts mentioned:
Financial Metrics:
- Sharpe Ratio: Indicates the return of an investment compared to its risk.
- Beta: Measures the stock's sensitivity to market movements.
- Alpha: Measures the excess return of a stock compared to a benchmark after adjusting for market risk.
Volatility and Risk:
- Standard Deviation: Measures the dispersion of returns.
- Market Risk: Systematic risk that cannot be diversified away.
- Downside Risk: Measures the likelihood of losses rather than gains.
Coca-Cola's Volatility:
- Historical Volatility: Analyzing past trends to predict future behavior.
- Implied Volatility: Forecasts future price fluctuations.
Investment Strategies:
- Utilizing Volatility: Assessing risk and reward, identifying opportunities, and diversification strategies based on volatility.
- Pair Trading: Exploiting short-term market inefficiencies by trading correlated shares.
Market Influences:
- Industry and Economic Factors: Events, regulations, and economic conditions influencing stock prices.
- Company Performance: Product launches, earnings reports, and company-specific events impacting stock prices.
Risk Assessment:
- Systematic vs. Unsystematic Risk: Distinguishing market-related and company-specific risks.
Valuation and Investment Recommendations:
- Intrinsic Value: Differentiating between market value and intrinsic value to evaluate investment opportunities.
- Financial Analysis Tools: Using various metrics and indicators to assess investment viability.
The information provided touches on market dynamics, risk evaluation, and strategies for utilizing volatility in investment decisions. Understanding these concepts helps investors make informed choices based on a stock's performance and potential. It's crucial to combine such analysis with broader economic and industry research for comprehensive investment decisions.
