Correlation Between KEURIG and Nates Food

Can any of the company-specific risk be diversified away by investing in both KEURIG and Nates Food 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 and Nates Food 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 Nates Food Co, you can compare the effects of market volatilities on KEURIG and Nates Food 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 with a short position of Nates Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of KEURIG and Nates Food.

Diversification Opportunities for KEURIG and Nates Food

0.0

Correlation Coefficient

KEURIG  Nates Food

Pay attention - limited upside

The 3 months correlation between KEURIG and Nates is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KEURIG DR PEPPER and Nates Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nates Food and KEURIG 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 Nates Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nates Food has no effect on the direction of KEURIG i.e., KEURIG and Nates Food go up and down completely randomly.

Pair Corralation between KEURIG and Nates Food

If you would invest  0.01  in Nates Food Co on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Nates Food Co or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

KEURIG DR PEPPER  vs.  Nates Food Co

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. Despite somewhat strong basic indicators, KEURIG is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nates Food

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nates Food Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Nates Food is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with KEURIG and Nates Food

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

The idea behind KEURIG DR PEPPER and Nates Food Co 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.