Correlation Between Keurig Dr and Millennium Group

Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Millennium Group 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 Keurig Dr and Millennium Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Keurig Dr Pepper and Millennium Group International, you can compare the effects of market volatilities on Keurig Dr and Millennium Group 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 Keurig Dr with a short position of Millennium Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Millennium Group.

Diversification Opportunities for Keurig Dr and Millennium Group

0.21

Correlation Coefficient

Keurig Dr  Millennium Group

Modest diversification

The 3 months correlation between Keurig and Millennium is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Millennium Group International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Millennium Group Int and Keurig Dr 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 Keurig Dr Pepper are associated (or correlated) with Millennium Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Millennium Group Int has no effect on the direction of Keurig Dr i.e., Keurig Dr and Millennium Group go up and down completely randomly.

Pair Corralation between Keurig Dr and Millennium Group

Considering the 90-day investment horizon Keurig Dr Pepper is expected to under-perform the Millennium Group. But the stock apears to be less risky and, when comparing its historical volatility, Keurig Dr Pepper is 23.91 times less risky than Millennium Group. The stock trades about -0.22 of its potential returns per unit of risk. The Millennium Group International is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  151.00  in Millennium Group International on October 6, 2024 and sell it today you would earn a total of  29.00  from holding Millennium Group International or generate 19.21% return on investment over 90 days.

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

Keurig Dr Pepper  vs.  Millennium Group International

Keurig Dr Pepper

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Keurig Dr Pepper has generated negative risk-adjusted returns adding no value to investors with long positions. Even with inconsistent performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Millennium Group Int

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Millennium Group International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Millennium Group demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Keurig Dr and Millennium Group

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

The idea behind Keurig Dr Pepper and Millennium Group International 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.