Correlation Between Keurig Dr and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Aegean Airlines 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 Dr and Aegean Airlines 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 Aegean Airlines SA, you can compare the effects of market volatilities on Keurig Dr and Aegean Airlines 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 Dr with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Aegean Airlines.
Diversification Opportunities for Keurig Dr and Aegean Airlines
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Keurig and Aegean is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and Keurig Dr 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 Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of Keurig Dr i.e., Keurig Dr and Aegean Airlines go up and down completely randomly.
Pair Corralation between Keurig Dr and Aegean Airlines
Considering the 90-day investment horizon Keurig Dr Pepper is expected to generate 0.74 times more return on investment than Aegean Airlines. However, Keurig Dr Pepper is 1.34 times less risky than Aegean Airlines. It trades about 0.03 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.05 per unit of risk. If you would invest 3,096 in Keurig Dr Pepper on September 14, 2024 and sell it today you would earn a total of 259.00 from holding Keurig Dr Pepper or generate 8.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keurig Dr Pepper vs. Aegean Airlines SA
Performance |
| Timeline |
| Keurig Dr Pepper |
| Aegean Airlines SA |
Keurig Dr and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and Aegean Airlines
The main advantage of trading using opposite Keurig Dr and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| Keurig Dr vs. Coca Cola Femsa SAB | Keurig Dr vs. Embotelladora Andina SA | Keurig Dr vs. Coca Cola European Partners | Keurig Dr vs. Coca Cola Consolidated |
| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| CEOs Directory Screen CEOs from public companies around the world |