Correlation Between Keurig Dr and Pintec Technology

Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Pintec Technology 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 Pintec Technology 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 Pintec Technology Holdings, you can compare the effects of market volatilities on Keurig Dr and Pintec Technology 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 Pintec Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Pintec Technology.

Diversification Opportunities for Keurig Dr and Pintec Technology

0.05

Correlation Coefficient

Keurig Dr  Pintec Technology

Significant diversification

The 3 months correlation between Keurig and Pintec is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Pintec Technology Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pintec Technology 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 Pintec Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pintec Technology has no effect on the direction of Keurig Dr i.e., Keurig Dr and Pintec Technology go up and down completely randomly.

Pair Corralation between Keurig Dr and Pintec Technology

Considering the 90-day investment horizon Keurig Dr Pepper is expected to under-perform the Pintec Technology. But the stock apears to be less risky and, when comparing its historical volatility, Keurig Dr Pepper is 2.43 times less risky than Pintec Technology. The stock trades about -0.06 of its potential returns per unit of risk. The Pintec Technology Holdings is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  92.00  in Pintec Technology Holdings on October 23, 2024 and sell it today you would earn a total of  8.00  from holding Pintec Technology Holdings or generate 8.7% return on investment over 90 days.

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

Keurig Dr Pepper  vs.  Pintec Technology Holdings

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.

Pintec Technology

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pintec Technology Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Pintec Technology is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Keurig Dr and Pintec Technology

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

The idea behind Keurig Dr Pepper and Pintec Technology Holdings 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.

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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.