Correlation Between Keurig Dr and Delek Logistics
Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Delek Logistics 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 Delek Logistics 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 Delek Logistics Partners, you can compare the effects of market volatilities on Keurig Dr and Delek Logistics 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 Delek Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Delek Logistics.
Diversification Opportunities for Keurig Dr and Delek Logistics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keurig and Delek is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Delek Logistics Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delek Logistics Partners 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 Delek Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delek Logistics Partners has no effect on the direction of Keurig Dr i.e., Keurig Dr and Delek Logistics go up and down completely randomly.
Pair Corralation between Keurig Dr and Delek Logistics
Considering the 90-day investment horizon Keurig Dr Pepper is expected to generate 0.66 times more return on investment than Delek Logistics. However, Keurig Dr Pepper is 1.52 times less risky than Delek Logistics. It trades about 0.01 of its potential returns per unit of risk. Delek Logistics Partners is currently generating about -0.01 per unit of risk. If you would invest 3,192 in Keurig Dr Pepper on September 4, 2024 and sell it today you would earn a total of 62.00 from holding Keurig Dr Pepper or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keurig Dr Pepper vs. Delek Logistics Partners
Performance |
| Timeline |
| Keurig Dr Pepper |
| Delek Logistics Partners |
Keurig Dr and Delek Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and Delek Logistics
The main advantage of trading using opposite Keurig Dr and Delek Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, Delek Logistics 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 Delek Logistics will offset losses from the drop in Delek Logistics' long position.| Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
| Delek Logistics vs. CVR Energy | Delek Logistics vs. PBF Energy | Delek Logistics vs. HF Sinclair Corp | Delek Logistics vs. Par Pacific 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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