Correlation Between EastGroup Properties and Keurig Dr
Can any of the company-specific risk be diversified away by investing in both EastGroup Properties 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 EastGroup Properties and Keurig Dr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EastGroup Properties and Keurig Dr Pepper, you can compare the effects of market volatilities on EastGroup Properties 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 EastGroup Properties with a short position of Keurig Dr. Check out your portfolio center. Please also check ongoing floating volatility patterns of EastGroup Properties and Keurig Dr.
Diversification Opportunities for EastGroup Properties and Keurig Dr
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EastGroup and Keurig is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties 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 EastGroup Properties 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 EastGroup Properties 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 EastGroup Properties i.e., EastGroup Properties and Keurig Dr go up and down completely randomly.
Pair Corralation between EastGroup Properties and Keurig Dr
Considering the 90-day investment horizon EastGroup Properties is expected to generate 1.35 times more return on investment than Keurig Dr. However, EastGroup Properties is 1.35 times more volatile than Keurig Dr Pepper. It trades about 0.21 of its potential returns per unit of risk. Keurig Dr Pepper is currently generating about 0.07 per unit of risk. If you would invest 15,822 in EastGroup Properties on November 3, 2024 and sell it today you would earn a total of 1,140 from holding EastGroup Properties or generate 7.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EastGroup Properties vs. Keurig Dr Pepper
Performance |
| Timeline |
| EastGroup Properties |
| Keurig Dr Pepper |
EastGroup Properties and Keurig Dr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EastGroup Properties and Keurig Dr
The main advantage of trading using opposite EastGroup Properties and Keurig Dr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EastGroup Properties 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.| EastGroup Properties vs. Terreno Realty | EastGroup Properties vs. Plymouth Industrial REIT | EastGroup Properties vs. LXP Industrial Trust | EastGroup Properties vs. First Industrial Realty |
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Check out your portfolio center.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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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