Correlation Between Keurig Dr and Contextlogic

Can any of the company-specific risk be diversified away by investing in both Keurig Dr and Contextlogic 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 Contextlogic 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 Contextlogic, you can compare the effects of market volatilities on Keurig Dr and Contextlogic 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 Contextlogic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keurig Dr and Contextlogic.

Diversification Opportunities for Keurig Dr and Contextlogic

0.24

Correlation Coefficient

Keurig Dr  Contextlogic

Modest diversification

The 3 months correlation between Keurig and Contextlogic is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Keurig Dr Pepper and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic 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 Contextlogic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contextlogic has no effect on the direction of Keurig Dr i.e., Keurig Dr and Contextlogic go up and down completely randomly.

Pair Corralation between Keurig Dr and Contextlogic

Considering the 90-day investment horizon Keurig Dr Pepper is expected to under-perform the Contextlogic. But the stock apears to be less risky and, when comparing its historical volatility, Keurig Dr Pepper is 3.79 times less risky than Contextlogic. The stock trades about -0.02 of its potential returns per unit of risk. The Contextlogic is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  714.00  in Contextlogic on April 30, 2025 and sell it today you would earn a total of  25.00  from holding Contextlogic or generate 3.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	59.68%
Values	Daily Returns

Keurig Dr Pepper  vs.  Contextlogic

Keurig Dr Pepper

Risk-Adjusted Performance

Very Weak

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.

Contextlogic

Risk-Adjusted Performance

Insignificant

Over the last 90 days Contextlogic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather unfluctuating technical and fundamental indicators, Contextlogic may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Keurig Dr and Contextlogic

The main advantage of trading using opposite Keurig Dr and Contextlogic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keurig Dr position performs unexpectedly, Contextlogic 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 Contextlogic will offset losses from the drop in Contextlogic's long position.

The idea behind Keurig Dr Pepper and Contextlogic 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.