Correlation Between Reitar Logtech and Keurig Dr

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

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

Diversification Opportunities for Reitar Logtech and Keurig Dr

0.1

Correlation Coefficient

Reitar Logtech  Keurig Dr

Average diversification

The 3 months correlation between Reitar and Keurig is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Reitar Logtech Holdings and Keurig Dr Pepper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keurig Dr Pepper and Reitar Logtech 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 Reitar Logtech Holdings are associated (or correlated) with Keurig Dr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keurig Dr Pepper has no effect on the direction of Reitar Logtech i.e., Reitar Logtech and Keurig Dr go up and down completely randomly.

Pair Corralation between Reitar Logtech and Keurig Dr

Given the investment horizon of 90 days Reitar Logtech Holdings is expected to generate 13.78 times more return on investment than Keurig Dr. However, Reitar Logtech is 13.78 times more volatile than Keurig Dr Pepper. It trades about 0.0 of its potential returns per unit of risk. Keurig Dr Pepper is currently generating about 0.02 per unit of risk. If you would invest  468.00  in Reitar Logtech Holdings on September 22, 2024 and sell it today you would lose (82.00) from holding Reitar Logtech Holdings or give up 17.52% of portfolio value over 90 days.

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

Reitar Logtech Holdings  vs.  Keurig Dr Pepper

Reitar Logtech Holdings

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Reitar Logtech Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Reitar Logtech reported solid returns over the last few months and may actually be approaching a breakup point.

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 January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Reitar Logtech and Keurig Dr

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

The idea behind Reitar Logtech Holdings and Keurig Dr Pepper 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.