Correlation Between Savers Value and Keurig Dr

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

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

Diversification Opportunities for Savers Value and Keurig Dr

-0.79

Correlation Coefficient

Savers Value  Keurig Dr

Pay attention - limited upside

The 3 months correlation between Savers and Keurig is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Savers Value Village, 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 Savers Value 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 Savers Value Village, 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 Savers Value i.e., Savers Value and Keurig Dr go up and down completely randomly.

Pair Corralation between Savers Value and Keurig Dr

Considering the 90-day investment horizon Savers Value Village, is expected to under-perform the Keurig Dr. In addition to that, Savers Value is 3.01 times more volatile than Keurig Dr Pepper. It trades about -0.11 of its total potential returns per unit of risk. Keurig Dr Pepper is currently generating about 0.1 per unit of volatility. If you would invest  3,173  in Keurig Dr Pepper on December 28, 2024 and sell it today you would earn a total of  253.00  from holding Keurig Dr Pepper or generate 7.97% return on investment over 90 days.

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

Savers Value Village,  vs.  Keurig Dr Pepper

Savers Value Village,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Savers Value Village, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Keurig Dr Pepper

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Keurig Dr Pepper are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent fundamental indicators, Keurig Dr may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Savers Value and Keurig Dr

The main advantage of trading using opposite Savers Value and Keurig Dr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savers Value 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 Savers Value Village, 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.