Correlation Between Keurig Dr and Graham Holdings
Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Graham Holdings 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 Graham Holdings 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 Graham Holdings Co, you can compare the effects of market volatilities on Keurig Dr and Graham Holdings 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 Graham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Graham Holdings.
Diversification Opportunities for Keurig Dr and Graham Holdings
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Keurig and Graham is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Graham Holdings Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Graham 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 Graham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Graham Holdings has no effect on the direction of Keurig Dr i.e., Keurig Dr and Graham Holdings go up and down completely randomly.
Pair Corralation between Keurig Dr and Graham Holdings
Considering the 90-day investment horizon Keurig Dr Pepper is expected to under-perform the Graham Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Keurig Dr Pepper is 1.31 times less risky than Graham Holdings. The stock trades about -0.16 of its potential returns per unit of risk. The Graham Holdings Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. 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 |
Keurig Dr Pepper vs. Graham Holdings Co
Performance |
| Timeline |
| Keurig Dr Pepper |
| Graham Holdings |
Keurig Dr and Graham Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and Graham Holdings
The main advantage of trading using opposite Keurig Dr and Graham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, Graham Holdings 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 Graham Holdings will offset losses from the drop in Graham Holdings' long position.| Keurig Dr vs. PepsiCo | Keurig Dr vs. Vita Coco | Keurig Dr vs. Aquagold International | Keurig Dr vs. Thrivent High Yield |
| Graham Holdings vs. Cable One | Graham Holdings vs. Adtalem Global Education | Graham Holdings vs. Axalta Coating Systems | Graham Holdings vs. Madison Square Garden |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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