Correlation Between Barfresh Food and Keurig Dr

Can any of the company-specific risk be diversified away by investing in both Barfresh Food and Keurig Dr 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 Barfresh Food and Keurig Dr into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Barfresh Food Group and Keurig Dr Pepper, you can compare the effects of market volatilities on Barfresh Food 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 Barfresh Food with a short position of Keurig Dr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barfresh Food and Keurig Dr.

Diversification Opportunities for Barfresh Food and Keurig Dr

0.29

Correlation Coefficient

Barfresh Food  Keurig Dr

Modest diversification

The 3 months correlation between Barfresh and Keurig is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Barfresh Food Group 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 Barfresh Food 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 Barfresh Food Group 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 Barfresh Food i.e., Barfresh Food and Keurig Dr go up and down completely randomly.

Pair Corralation between Barfresh Food and Keurig Dr

Given the investment horizon of 90 days Barfresh Food Group is expected to generate 5.44 times more return on investment than Keurig Dr. However, Barfresh Food is 5.44 times more volatile than Keurig Dr Pepper. It trades about 0.06 of its potential returns per unit of risk. Keurig Dr Pepper is currently generating about -0.01 per unit of risk. If you would invest  250.00  in Barfresh Food Group on May 7, 2025 and sell it today you would earn a total of  36.00  from holding Barfresh Food Group or generate 14.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Barfresh Food Group  vs.  Keurig Dr Pepper

Barfresh Food Group

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Barfresh Food Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating technical and fundamental indicators, Barfresh Food demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Keurig Dr Pepper

Risk-Adjusted Performance

Weakest

Over the last 90 days Keurig Dr Pepper has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Keurig Dr is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Barfresh Food and Keurig Dr

The main advantage of trading using opposite Barfresh Food and Keurig Dr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barfresh Food 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.

The idea behind Barfresh Food Group and Keurig Dr Pepper pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.