Correlation Between Keurig Dr and HUNTINGTON

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

Diversification Opportunities for Keurig Dr and HUNTINGTON

-0.21

Correlation Coefficient

Keurig Dr  HUNTINGTON

Very good diversification

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

Pair Corralation between Keurig Dr and HUNTINGTON

Considering the 90-day investment horizon Keurig Dr Pepper is expected to generate 1.82 times more return on investment than HUNTINGTON. However, Keurig Dr is 1.82 times more volatile than HUNTINGTON BANCSHARES INC. It trades about 0.07 of its potential returns per unit of risk. HUNTINGTON BANCSHARES INC is currently generating about -0.13 per unit of risk. If you would invest  3,208  in Keurig Dr Pepper on December 25, 2024 and sell it today you would earn a total of  174.00  from holding Keurig Dr Pepper or generate 5.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	91.67%
Values	Daily Returns

Keurig Dr Pepper  vs.  HUNTINGTON BANCSHARES INC

Keurig Dr Pepper

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Keurig Dr Pepper are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental indicators, Keurig Dr is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

HUNTINGTON BANCSHARES INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days HUNTINGTON BANCSHARES INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, HUNTINGTON is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Keurig Dr and HUNTINGTON

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

The idea behind Keurig Dr Pepper and HUNTINGTON BANCSHARES INC 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.