Correlation Between Keurig Dr and SPECTRA
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By analyzing existing cross correlation between Keurig Dr Pepper and SPECTRA ENERGY PARTNERS, you can compare the effects of market volatilities on Keurig Dr and SPECTRA 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 SPECTRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and SPECTRA.
Diversification Opportunities for Keurig Dr and SPECTRA
Poor diversification
The 3 months correlation between Keurig and SPECTRA is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and SPECTRA ENERGY PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRA ENERGY PARTNERS 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 SPECTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRA ENERGY PARTNERS has no effect on the direction of Keurig Dr i.e., Keurig Dr and SPECTRA go up and down completely randomly.
Pair Corralation between Keurig Dr and SPECTRA
Considering the 90-day investment horizon Keurig Dr Pepper is expected to under-perform the SPECTRA. In addition to that, Keurig Dr is 1.35 times more volatile than SPECTRA ENERGY PARTNERS. It trades about -0.18 of its total potential returns per unit of risk. SPECTRA ENERGY PARTNERS is currently generating about -0.06 per unit of volatility. If you would invest 10,452 in SPECTRA ENERGY PARTNERS on September 25, 2024 and sell it today you would lose (305.00) from holding SPECTRA ENERGY PARTNERS or give up 2.92% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 74.6% |
Values | Daily Returns |
Keurig Dr Pepper vs. SPECTRA ENERGY PARTNERS
Performance |
Timeline |
Keurig Dr Pepper |
SPECTRA ENERGY PARTNERS |
Keurig Dr and SPECTRA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Keurig Dr and SPECTRA
The main advantage of trading using opposite Keurig Dr and SPECTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, SPECTRA 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 SPECTRA will offset losses from the drop in SPECTRA's long position.Keurig Dr vs. Celsius Holdings | Keurig Dr vs. Vita Coco | Keurig Dr vs. PepsiCo | Keurig Dr vs. Coca Cola Femsa SAB |
SPECTRA vs. The Joint Corp | SPECTRA vs. Udemy Inc | SPECTRA vs. Western Asset Investment | SPECTRA vs. LENSAR Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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