Correlation Between CONSOLIDATED and Keurig Dr
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By analyzing existing cross correlation between CONSOLIDATED EDISON N and Keurig Dr Pepper, you can compare the effects of market volatilities on CONSOLIDATED and Keurig Dr 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 CONSOLIDATED with a short position of Keurig Dr. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSOLIDATED and Keurig Dr.
Diversification Opportunities for CONSOLIDATED and Keurig Dr
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between CONSOLIDATED and Keurig is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding CONSOLIDATED EDISON N and Keurig Dr Pepper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keurig Dr Pepper and CONSOLIDATED 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 CONSOLIDATED EDISON N are associated (or correlated) with Keurig Dr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keurig Dr Pepper has no effect on the direction of CONSOLIDATED i.e., CONSOLIDATED and Keurig Dr go up and down completely randomly.
Pair Corralation between CONSOLIDATED and Keurig Dr
Assuming the 90 days trading horizon CONSOLIDATED EDISON N is expected to under-perform the Keurig Dr. But the bond apears to be less risky and, when comparing its historical volatility, CONSOLIDATED EDISON N is 1.06 times less risky than Keurig Dr. The bond trades about -0.11 of its potential returns per unit of risk. The Keurig Dr Pepper is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,320 in Keurig Dr Pepper on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Keurig Dr Pepper or generate 1.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
CONSOLIDATED EDISON N vs. Keurig Dr Pepper
Performance |
| Timeline |
| CONSOLIDATED EDISON |
| Keurig Dr Pepper |
CONSOLIDATED and Keurig Dr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSOLIDATED and Keurig Dr
The main advantage of trading using opposite CONSOLIDATED and Keurig Dr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSOLIDATED position performs unexpectedly, Keurig Dr 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 Keurig Dr will offset losses from the drop in Keurig Dr's long position.| CONSOLIDATED vs. AEP TEX INC | CONSOLIDATED vs. US BANK NATIONAL | CONSOLIDATED vs. PayPal Holdings | CONSOLIDATED vs. Alphabet Inc Class C |
| Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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