Correlation Between 655844CK2 and Keurig Dr

Can any of the company-specific risk be diversified away by investing in both 655844CK2 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 655844CK2 and Keurig Dr into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NSC 23 15 MAY 31 and Keurig Dr Pepper, you can compare the effects of market volatilities on 655844CK2 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 655844CK2 with a short position of Keurig Dr. Check out your portfolio center. Please also check ongoing floating volatility patterns of 655844CK2 and Keurig Dr.

Diversification Opportunities for 655844CK2 and Keurig Dr

-0.44

Correlation Coefficient

655844CK2  Keurig Dr

Very good diversification

The 3 months correlation between 655844CK2 and Keurig is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding NSC 23 15 MAY 31 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 655844CK2 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 NSC 23 15 MAY 31 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 655844CK2 i.e., 655844CK2 and Keurig Dr go up and down completely randomly.

Pair Corralation between 655844CK2 and Keurig Dr

Assuming the 90 days trading horizon NSC 23 15 MAY 31 is expected to generate 0.47 times more return on investment than Keurig Dr. However, NSC 23 15 MAY 31 is 2.11 times less risky than Keurig Dr. It trades about -0.14 of its potential returns per unit of risk. Keurig Dr Pepper is currently generating about -0.22 per unit of risk. If you would invest  8,792  in NSC 23 15 MAY 31 on October 12, 2024 and sell it today you would lose (427.00) from holding NSC 23 15 MAY 31 or give up 4.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	88.52%
Values	Daily Returns

NSC 23 15 MAY 31  vs.  Keurig Dr Pepper

NSC 23 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NSC 23 15 MAY 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 655844CK2 is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

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

Pair Trading with 655844CK2 and Keurig Dr

The main advantage of trading using opposite 655844CK2 and Keurig Dr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 655844CK2 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 NSC 23 15 MAY 31 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.