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The correlation between Coca-Cola stock and the S&P 500 is 0.40. This means that 40% of...

The correlation between Coca-Cola stock and the S&P 500 is 0.40. This means that 40% of Coca-Cola’s volatility can be diversified away.

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If the correlation of Coco cola is 0.40 with S and P 500, it means that the stock goes up 40% if S and P index goes up by 100% and goes down by 40% if S and P index goes down by 100%

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