Correlation Between Keurig Dr and Thai Beverage
Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Thai Beverage 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 Thai Beverage 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 Thai Beverage PCL, you can compare the effects of market volatilities on Keurig Dr and Thai Beverage 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 Thai Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Thai Beverage.
Diversification Opportunities for Keurig Dr and Thai Beverage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Keurig and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Thai Beverage PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Beverage PCL 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 Thai Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Beverage PCL has no effect on the direction of Keurig Dr i.e., Keurig Dr and Thai Beverage go up and down completely randomly.
Pair Corralation between Keurig Dr and Thai Beverage
Considering the 90-day investment horizon Keurig Dr Pepper is expected to generate 0.57 times more return on investment than Thai Beverage. However, Keurig Dr Pepper is 1.75 times less risky than Thai Beverage. It trades about -0.01 of its potential returns per unit of risk. Thai Beverage PCL is currently generating about -0.06 per unit of risk. If you would invest 3,608 in Keurig Dr Pepper on August 24, 2024 and sell it today you would lose (342.00) from holding Keurig Dr Pepper or give up 9.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 60.08% |
| Values | Daily Returns |
Keurig Dr Pepper vs. Thai Beverage PCL
Performance |
| Timeline |
| Keurig Dr Pepper |
| Thai Beverage PCL |
Keurig Dr and Thai Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and Thai Beverage
The main advantage of trading using opposite Keurig Dr and Thai Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, Thai Beverage 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 Thai Beverage will offset losses from the drop in Thai Beverage's long position.| Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
| Thai Beverage vs. Andrew Peller Limited | Thai Beverage vs. Aristocrat Group Corp | Thai Beverage vs. Iconic Brands | Thai Beverage vs. Naked Wines plc |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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