Correlation Between Keurig Dr and CONSUMERS
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By analyzing existing cross correlation between Keurig Dr Pepper and CONSUMERS ENERGY 395, you can compare the effects of market volatilities on Keurig Dr and CONSUMERS 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 CONSUMERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and CONSUMERS.
Diversification Opportunities for Keurig Dr and CONSUMERS
Very good diversification
The 3 months correlation between Keurig and CONSUMERS is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and CONSUMERS ENERGY 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSUMERS ENERGY 5 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 CONSUMERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSUMERS ENERGY 5 has no effect on the direction of Keurig Dr i.e., Keurig Dr and CONSUMERS go up and down completely randomly.
Pair Corralation between Keurig Dr and CONSUMERS
Considering the 90-day investment horizon Keurig Dr Pepper is expected to generate 0.45 times more return on investment than CONSUMERS. However, Keurig Dr Pepper is 2.21 times less risky than CONSUMERS. It trades about 0.0 of its potential returns per unit of risk. CONSUMERS ENERGY 395 is currently generating about -0.01 per unit of risk. If you would invest 3,400 in Keurig Dr Pepper on September 3, 2024 and sell it today you would lose (146.00) from holding Keurig Dr Pepper or give up 4.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 21.26% |
| Values | Daily Returns |
Keurig Dr Pepper vs. CONSUMERS ENERGY 395
Performance |
| Timeline |
| Keurig Dr Pepper |
| CONSUMERS ENERGY 5 |
Keurig Dr and CONSUMERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and CONSUMERS
The main advantage of trading using opposite Keurig Dr and CONSUMERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, CONSUMERS 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 CONSUMERS will offset losses from the drop in CONSUMERS's long position.| Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
| CONSUMERS vs. Emerson Radio | CONSUMERS vs. Allient | CONSUMERS vs. HF Sinclair Corp | CONSUMERS vs. Pentair 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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