Correlation Between Keurig Dr and Marine Products
Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Marine Products 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 Marine Products 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 Marine Products, you can compare the effects of market volatilities on Keurig Dr and Marine Products 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 Marine Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Marine Products.
Diversification Opportunities for Keurig Dr and Marine Products
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keurig and Marine is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Marine Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marine Products 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 Marine Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marine Products has no effect on the direction of Keurig Dr i.e., Keurig Dr and Marine Products go up and down completely randomly.
Pair Corralation between Keurig Dr and Marine Products
Considering the 90-day investment horizon Keurig Dr Pepper is expected to generate 0.66 times more return on investment than Marine Products. However, Keurig Dr Pepper is 1.51 times less risky than Marine Products. It trades about 0.06 of its potential returns per unit of risk. Marine Products is currently generating about -0.05 per unit of risk. If you would invest 3,229 in Keurig Dr Pepper on December 18, 2024 and sell it today you would earn a total of 155.00 from holding Keurig Dr Pepper or generate 4.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Keurig Dr Pepper vs. Marine Products
Performance |
Timeline |
Keurig Dr Pepper |
Marine Products |
Keurig Dr and Marine Products Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Keurig Dr and Marine Products
The main advantage of trading using opposite Keurig Dr and Marine Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, Marine Products 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 Marine Products will offset losses from the drop in Marine Products' long position.Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
Marine Products vs. Thor Industries | Marine Products vs. BRP Inc | Marine Products vs. Brunswick | Marine Products vs. EZGO Technologies |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |