Correlation Between Coles and Village Super
Can any of the company-specific risk be diversified away by investing in both Coles and Village Super 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 Coles and Village Super into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coles Group and Village Super Market, you can compare the effects of market volatilities on Coles and Village Super 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 Coles with a short position of Village Super. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coles and Village Super.
Diversification Opportunities for Coles and Village Super
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Coles and Village is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Coles Group and Village Super Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Village Super Market and Coles 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 Coles Group are associated (or correlated) with Village Super. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Village Super Market has no effect on the direction of Coles i.e., Coles and Village Super go up and down completely randomly.
Pair Corralation between Coles and Village Super
If you would invest 2,986 in Village Super Market on August 28, 2024 and sell it today you would earn a total of 255.00 from holding Village Super Market or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Coles Group vs. Village Super Market
Performance |
| Timeline |
| Coles Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Village Super Market |
Coles and Village Super Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coles and Village Super
The main advantage of trading using opposite Coles and Village Super positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coles position performs unexpectedly, Village Super 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 Village Super will offset losses from the drop in Village Super's long position.| Coles vs. Seven i Holdings | Coles vs. Grocery Outlet Holding | Coles vs. Krispy Kreme | Coles vs. Koninklijke Ahold Delhaize |
| Village Super vs. Innovative Food Hldg | Village Super vs. Calavo Growers | Village Super vs. The Chefs Warehouse | Village Super vs. AMCON Distributing |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |