Correlation Between Driven Brands and Kelly Services
Can any of the company-specific risk be diversified away by investing in both Driven Brands and Kelly Services 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 Kelly Services 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 Kelly Services B, you can compare the effects of market volatilities on Driven Brands and Kelly Services 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 Kelly Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Driven Brands and Kelly Services.
Diversification Opportunities for Driven Brands and Kelly Services
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Driven and Kelly is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Driven Brands Holdings and Kelly Services B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Services B 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 Kelly Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Services B has no effect on the direction of Driven Brands i.e., Driven Brands and Kelly Services go up and down completely randomly.
Pair Corralation between Driven Brands and Kelly Services
Given the investment horizon of 90 days Driven Brands Holdings is expected to generate 0.59 times more return on investment than Kelly Services. However, Driven Brands Holdings is 1.71 times less risky than Kelly Services. It trades about 0.19 of its potential returns per unit of risk. Kelly Services B is currently generating about 0.11 per unit of risk. If you would invest 1,602 in Driven Brands Holdings on November 2, 2024 and sell it today you would earn a total of 78.00 from holding Driven Brands Holdings or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Driven Brands Holdings vs. Kelly Services B
Performance |
| Timeline |
| Driven Brands Holdings |
| Kelly Services B |
Driven Brands and Kelly Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Driven Brands and Kelly Services
The main advantage of trading using opposite Driven Brands and Kelly Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Driven Brands position performs unexpectedly, Kelly Services 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 Kelly Services will offset losses from the drop in Kelly Services' long position.| Driven Brands vs. CarGurus | Driven Brands vs. KAR Auction Services | Driven Brands vs. Kingsway Financial Services | Driven Brands vs. Group 1 Automotive |
| Kelly Services vs. Heidrick Struggles International | Kelly Services vs. Kforce Inc | Kelly Services vs. Korn Ferry | Kelly Services vs. Kelly Services A |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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