Correlation Between Keurig Dr and Xtant Medical
Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Xtant Medical 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 Xtant Medical 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 Xtant Medical Holdings, you can compare the effects of market volatilities on Keurig Dr and Xtant Medical 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 Xtant Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Xtant Medical.
Diversification Opportunities for Keurig Dr and Xtant Medical
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Keurig and Xtant is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Xtant Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtant Medical 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 Xtant Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtant Medical Holdings has no effect on the direction of Keurig Dr i.e., Keurig Dr and Xtant Medical go up and down completely randomly.
Pair Corralation between Keurig Dr and Xtant Medical
Considering the 90-day investment horizon Keurig Dr Pepper is expected to generate 0.23 times more return on investment than Xtant Medical. However, Keurig Dr Pepper is 4.32 times less risky than Xtant Medical. It trades about 0.02 of its potential returns per unit of risk. Xtant Medical Holdings is currently generating about -0.08 per unit of risk. If you would invest 3,120 in Keurig Dr Pepper on September 3, 2024 and sell it today you would earn a total of 145.00 from holding Keurig Dr Pepper or generate 4.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keurig Dr Pepper vs. Xtant Medical Holdings
Performance |
| Timeline |
| Keurig Dr Pepper |
| Xtant Medical Holdings |
Keurig Dr and Xtant Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keurig Dr and Xtant Medical
The main advantage of trading using opposite Keurig Dr and Xtant Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, Xtant Medical 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 Xtant Medical will offset losses from the drop in Xtant Medical's long position.| Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
| Xtant Medical vs. Neuropace | Xtant Medical vs. Electromed | Xtant Medical vs. Orthopediatrics Corp | Xtant Medical vs. SurModics |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |