Correlation Between Keurig Dr and ATS
Can any of the company-specific risk be diversified away by investing in both Keurig Dr and ATS 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 ATS 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 ATS Corporation, you can compare the effects of market volatilities on Keurig Dr and ATS 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 ATS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and ATS.
Diversification Opportunities for Keurig Dr and ATS
Very good diversification
The 3 months correlation between Keurig and ATS is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and ATS Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATS Corporation 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 ATS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATS Corporation has no effect on the direction of Keurig Dr i.e., Keurig Dr and ATS go up and down completely randomly.
Pair Corralation between Keurig Dr and ATS
Considering the 90-day investment horizon Keurig Dr Pepper is expected to under-perform the ATS. But the stock apears to be less risky and, when comparing its historical volatility, Keurig Dr Pepper is 2.12 times less risky than ATS. The stock trades about -0.03 of its potential returns per unit of risk. The ATS Corporation is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,172 in ATS Corporation on August 30, 2024 and sell it today you would lose (160.00) from holding ATS Corporation or give up 5.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keurig Dr Pepper vs. ATS Corp.
Performance |
| Timeline |
| Keurig Dr Pepper |
| ATS Corporation |
Keurig Dr and ATS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and ATS
The main advantage of trading using opposite Keurig Dr and ATS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, ATS 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 ATS will offset losses from the drop in ATS's long position.| Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
| ATS vs. Keurig Dr Pepper | ATS vs. NetSol Technologies | ATS vs. Westrock Coffee | ATS vs. Sapiens International |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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