Correlation Between Datadog and Keurig Dr

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

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

Diversification Opportunities for Datadog and Keurig Dr

-0.04

Correlation Coefficient

Datadog  Keurig Dr

Good diversification

The 3 months correlation between Datadog and Keurig is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Datadog 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 Datadog 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 Datadog 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 Datadog i.e., Datadog and Keurig Dr go up and down completely randomly.

Pair Corralation between Datadog and Keurig Dr

Given the investment horizon of 90 days Datadog is expected to generate 1.59 times more return on investment than Keurig Dr. However, Datadog is 1.59 times more volatile than Keurig Dr Pepper. It trades about 0.13 of its potential returns per unit of risk. Keurig Dr Pepper is currently generating about -0.14 per unit of risk. If you would invest  9,447  in Datadog on July 2, 2025 and sell it today you would earn a total of  4,788  from holding Datadog or generate 50.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Datadog  vs.  Keurig Dr Pepper

Datadog

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Datadog are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Datadog may actually be approaching a critical reversion point that can send shares even higher in October 2025.

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 uncertain performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in October 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Datadog and Keurig Dr

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

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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.