Correlation Between Video River and Franchise
Can any of the company-specific risk be diversified away by investing in both Video River and Franchise 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 Video River and Franchise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Video River Networks and Franchise Group, you can compare the effects of market volatilities on Video River and Franchise 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 Video River with a short position of Franchise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Video River and Franchise.
Diversification Opportunities for Video River and Franchise
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Video and Franchise is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Video River Networks and Franchise Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franchise Group and Video River 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 Video River Networks are associated (or correlated) with Franchise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franchise Group has no effect on the direction of Video River i.e., Video River and Franchise go up and down completely randomly.
Pair Corralation between Video River and Franchise
If you would invest 0.35 in Video River Networks on November 3, 2024 and sell it today you would lose (0.10) from holding Video River Networks or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Video River Networks vs. Franchise Group
Performance |
| Timeline |
| Video River Networks |
| Franchise Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Video River and Franchise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Video River and Franchise
The main advantage of trading using opposite Video River and Franchise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Video River position performs unexpectedly, Franchise 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 Franchise will offset losses from the drop in Franchise's long position.| Video River vs. Eco Depot | Video River vs. GiveMePower Corp | Video River vs. Vopia Inc | Video River vs. Majic Wheels Corp |
| Franchise vs. Mega Uranium | Franchise vs. Laramide Resources | Franchise vs. NXG NextGen Infrastructure | Franchise vs. Pinetree Capital |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |