Correlation Between Graham Holdings and Keurig Dr
Can any of the company-specific risk be diversified away by investing in both Graham Holdings 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 Graham Holdings and Keurig Dr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham Holdings Co and Keurig Dr Pepper, you can compare the effects of market volatilities on Graham Holdings 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 Graham Holdings with a short position of Keurig Dr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham Holdings and Keurig Dr.
Diversification Opportunities for Graham Holdings and Keurig Dr
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Graham and Keurig is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Graham Holdings Co 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 Graham Holdings 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 Graham Holdings Co 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 Graham Holdings i.e., Graham Holdings and Keurig Dr go up and down completely randomly.
Pair Corralation between Graham Holdings and Keurig Dr
Considering the 90-day investment horizon Graham Holdings Co is expected to generate 1.31 times more return on investment than Keurig Dr. However, Graham Holdings is 1.31 times more volatile than Keurig Dr Pepper. It trades about 0.09 of its potential returns per unit of risk. Keurig Dr Pepper is currently generating about -0.16 per unit of risk. If you would invest 88,711 in Graham Holdings Co on October 26, 2024 and sell it today you would earn a total of 2,018 from holding Graham Holdings Co or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Graham Holdings Co vs. Keurig Dr Pepper
Performance |
| Timeline |
| Graham Holdings |
| Keurig Dr Pepper |
Graham Holdings and Keurig Dr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Graham Holdings and Keurig Dr
The main advantage of trading using opposite Graham Holdings and Keurig Dr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham Holdings 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.| Graham Holdings vs. Cable One | Graham Holdings vs. Adtalem Global Education | Graham Holdings vs. Axalta Coating Systems | Graham Holdings vs. Madison Square Garden |
| Keurig Dr vs. PepsiCo | Keurig Dr vs. Vita Coco | Keurig Dr vs. Aquagold International | Keurig Dr vs. Thrivent High Yield |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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