Correlation Between Holmes Place and Victory Supermarket
Can any of the company-specific risk be diversified away by investing in both Holmes Place and Victory Supermarket 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 Holmes Place and Victory Supermarket into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holmes Place International and Victory Supermarket Chain, you can compare the effects of market volatilities on Holmes Place and Victory Supermarket 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 Holmes Place with a short position of Victory Supermarket. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holmes Place and Victory Supermarket.
Diversification Opportunities for Holmes Place and Victory Supermarket
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Holmes and Victory is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Holmes Place International and Victory Supermarket Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Victory Supermarket Chain and Holmes Place 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 Holmes Place International are associated (or correlated) with Victory Supermarket. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Victory Supermarket Chain has no effect on the direction of Holmes Place i.e., Holmes Place and Victory Supermarket go up and down completely randomly.
Pair Corralation between Holmes Place and Victory Supermarket
Assuming the 90 days trading horizon Holmes Place is expected to generate 2.04 times less return on investment than Victory Supermarket. But when comparing it to its historical volatility, Holmes Place International is 1.05 times less risky than Victory Supermarket. It trades about 0.07 of its potential returns per unit of risk. Victory Supermarket Chain is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 304,074 in Victory Supermarket Chain on September 1, 2024 and sell it today you would earn a total of 227,826 from holding Victory Supermarket Chain or generate 74.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holmes Place International vs. Victory Supermarket Chain
Performance |
| Timeline |
| Holmes Place Interna |
| Victory Supermarket Chain |
Holmes Place and Victory Supermarket Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holmes Place and Victory Supermarket
The main advantage of trading using opposite Holmes Place and Victory Supermarket positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holmes Place position performs unexpectedly, Victory Supermarket 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 Victory Supermarket will offset losses from the drop in Victory Supermarket's long position.| Holmes Place vs. Fattal 1998 Holdings | Holmes Place vs. Delek Group | Holmes Place vs. Bank Leumi Le Israel | Holmes Place vs. Matrix |
| Victory Supermarket vs. Kerur Holdings | Victory Supermarket vs. Sano Brunos Enterprises | Victory Supermarket vs. Al Bad Massuot Yitzhak |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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