Correlation Between Keurig Dr and Selina Hospitality
Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Selina Hospitality 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 Selina Hospitality 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 Selina Hospitality PLC, you can compare the effects of market volatilities on Keurig Dr and Selina Hospitality 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 Selina Hospitality. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Selina Hospitality.
Diversification Opportunities for Keurig Dr and Selina Hospitality
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Keurig and Selina is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Selina Hospitality PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selina Hospitality PLC 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 Selina Hospitality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selina Hospitality PLC has no effect on the direction of Keurig Dr i.e., Keurig Dr and Selina Hospitality go up and down completely randomly.
Pair Corralation between Keurig Dr and Selina Hospitality
If you would invest 3,154 in Keurig Dr Pepper on November 4, 2024 and sell it today you would earn a total of 56.00 from holding Keurig Dr Pepper or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Keurig Dr Pepper vs. Selina Hospitality PLC
Performance |
| Timeline |
| Keurig Dr Pepper |
| Selina Hospitality PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Keurig Dr and Selina Hospitality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and Selina Hospitality
The main advantage of trading using opposite Keurig Dr and Selina Hospitality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, Selina Hospitality 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 Selina Hospitality will offset losses from the drop in Selina Hospitality's long position.| Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
| Selina Hospitality vs. Warner Music Group | Selina Hospitality vs. Newell Brands | Selina Hospitality vs. Insteel Industries | Selina Hospitality vs. RBC Bearings Incorporated |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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