Correlation Between Keurig Dr and AMERICAN
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By analyzing existing cross correlation between Keurig Dr Pepper and AMERICAN EXPRESS CR, you can compare the effects of market volatilities on Keurig Dr and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and AMERICAN.
Diversification Opportunities for Keurig Dr and AMERICAN
Poor diversification
The 3 months correlation between Keurig and AMERICAN is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and AMERICAN EXPRESS CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS has no effect on the direction of Keurig Dr i.e., Keurig Dr and AMERICAN go up and down completely randomly.
Pair Corralation between Keurig Dr and AMERICAN
Considering the 90-day investment horizon Keurig Dr Pepper is expected to generate 5.02 times more return on investment than AMERICAN. However, Keurig Dr is 5.02 times more volatile than AMERICAN EXPRESS CR. It trades about 0.05 of its potential returns per unit of risk. AMERICAN EXPRESS CR is currently generating about -0.04 per unit of risk. If you would invest 3,334 in Keurig Dr Pepper on September 13, 2024 and sell it today you would earn a total of 47.00 from holding Keurig Dr Pepper or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Keurig Dr Pepper vs. AMERICAN EXPRESS CR
Performance |
| Timeline |
| Keurig Dr Pepper |
| AMERICAN EXPRESS |
Keurig Dr and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and AMERICAN
The main advantage of trading using opposite Keurig Dr and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN's long position.| Keurig Dr vs. Coca Cola Femsa SAB | Keurig Dr vs. Embotelladora Andina SA | Keurig Dr vs. Coca Cola European Partners | Keurig Dr vs. Coca Cola Consolidated |
| AMERICAN vs. Hurco Companies | AMERICAN vs. RBC Bearings Incorporated | AMERICAN vs. Xponential Fitness | AMERICAN vs. RCS MediaGroup SpA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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