Correlation Between Keurig Dr and BTS Group
Can any of the company-specific risk be diversified away by investing in both Keurig Dr and BTS Group 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 BTS Group 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 BTS Group Holdings, you can compare the effects of market volatilities on Keurig Dr and BTS Group 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 BTS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and BTS Group.
Diversification Opportunities for Keurig Dr and BTS Group
Weak diversification
The 3 months correlation between Keurig and BTS is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and BTS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTS Group Holdings 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 BTS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTS Group Holdings has no effect on the direction of Keurig Dr i.e., Keurig Dr and BTS Group go up and down completely randomly.
Pair Corralation between Keurig Dr and BTS Group
If you would invest 3,183 in Keurig Dr Pepper on November 27, 2024 and sell it today you would earn a total of 229.00 from holding Keurig Dr Pepper or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keurig Dr Pepper vs. BTS Group Holdings
Performance |
| Timeline |
| Keurig Dr Pepper |
| BTS Group Holdings |
Keurig Dr and BTS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and BTS Group
The main advantage of trading using opposite Keurig Dr and BTS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, BTS Group 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 BTS Group will offset losses from the drop in BTS Group's long position.| Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
| BTS Group vs. Denison Mines Corp | BTS Group vs. Life Time Group | BTS Group vs. Bloomin Brands | BTS Group vs. Biglari Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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