Correlation Between Keurig Dr and Sonida Senior
Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Sonida Senior 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 Sonida Senior 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 Sonida Senior Living, you can compare the effects of market volatilities on Keurig Dr and Sonida Senior 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 Sonida Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Sonida Senior.
Diversification Opportunities for Keurig Dr and Sonida Senior
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keurig and Sonida is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Sonida Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonida Senior Living 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 Sonida Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonida Senior Living has no effect on the direction of Keurig Dr i.e., Keurig Dr and Sonida Senior go up and down completely randomly.
Pair Corralation between Keurig Dr and Sonida Senior
Considering the 90-day investment horizon Keurig Dr Pepper is expected to generate 0.6 times more return on investment than Sonida Senior. However, Keurig Dr Pepper is 1.66 times less risky than Sonida Senior. It trades about 0.05 of its potential returns per unit of risk. Sonida Senior Living is currently generating about -0.02 per unit of risk. If you would invest 3,238 in Keurig Dr Pepper on December 4, 2024 and sell it today you would earn a total of 122.00 from holding Keurig Dr Pepper or generate 3.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Keurig Dr Pepper vs. Sonida Senior Living
Performance |
Timeline |
Keurig Dr Pepper |
Sonida Senior Living |
Keurig Dr and Sonida Senior Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Keurig Dr and Sonida Senior
The main advantage of trading using opposite Keurig Dr and Sonida Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, Sonida Senior 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 Sonida Senior will offset losses from the drop in Sonida Senior's long position.Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Transaction History View history of all your transactions and understand their impact on performance | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |