Correlation Between Driven Brands and Exchange Traded
Can any of the company-specific risk be diversified away by investing in both Driven Brands and Exchange Traded 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 Driven Brands and Exchange Traded into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Driven Brands Holdings and Exchange Traded Concepts, you can compare the effects of market volatilities on Driven Brands and Exchange Traded 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 Driven Brands with a short position of Exchange Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Driven Brands and Exchange Traded.
Diversification Opportunities for Driven Brands and Exchange Traded
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Driven and Exchange is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Driven Brands Holdings and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts and Driven Brands 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 Driven Brands Holdings are associated (or correlated) with Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of Driven Brands i.e., Driven Brands and Exchange Traded go up and down completely randomly.
Pair Corralation between Driven Brands and Exchange Traded
If you would invest 1,440 in Driven Brands Holdings on August 30, 2024 and sell it today you would earn a total of 246.00 from holding Driven Brands Holdings or generate 17.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.32% |
| Values | Daily Returns |
Driven Brands Holdings vs. Exchange Traded Concepts
Performance |
| Timeline |
| Driven Brands Holdings |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Driven Brands and Exchange Traded Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Driven Brands and Exchange Traded
The main advantage of trading using opposite Driven Brands and Exchange Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Driven Brands position performs unexpectedly, Exchange Traded 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 Exchange Traded will offset losses from the drop in Exchange Traded's long position.| Driven Brands vs. CarGurus | Driven Brands vs. KAR Auction Services | Driven Brands vs. Kingsway Financial Services | Driven Brands vs. Group 1 Automotive |
| Exchange Traded vs. Cambria Trinity ETF | Exchange Traded vs. Northern Lights | Exchange Traded vs. Cambria Global Momentum | Exchange Traded vs. Alpha Architect Value |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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