Correlation Between Ocado Group and Village Super
Can any of the company-specific risk be diversified away by investing in both Ocado Group 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 Ocado Group and Village Super into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocado Group plc and Village Super Market, you can compare the effects of market volatilities on Ocado Group 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 Ocado Group with a short position of Village Super. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocado Group and Village Super.
Diversification Opportunities for Ocado Group and Village Super
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ocado and Village is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ocado Group plc 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 Ocado Group 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 Ocado Group plc 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 Ocado Group i.e., Ocado Group and Village Super go up and down completely randomly.
Pair Corralation between Ocado Group and Village Super
Assuming the 90 days horizon Ocado Group is expected to generate 3.02 times less return on investment than Village Super. In addition to that, Ocado Group is 1.67 times more volatile than Village Super Market. It trades about 0.03 of its total potential returns per unit of risk. Village Super Market is currently generating about 0.17 per unit of volatility. If you would invest 3,205 in Village Super Market on November 18, 2024 and sell it today you would earn a total of 159.00 from holding Village Super Market or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ocado Group plc vs. Village Super Market
Performance |
| Timeline |
| Ocado Group plc |
| Village Super Market |
Ocado Group and Village Super Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocado Group and Village Super
The main advantage of trading using opposite Ocado Group and Village Super positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocado Group 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.| Ocado Group vs. Natural Grocers by | Ocado Group vs. Grocery Outlet Holding | Ocado Group vs. Village Super Market | Ocado Group vs. Ingles Markets Incorporated |
| Village Super vs. Ingles Markets Incorporated | Village Super vs. Natural Grocers by | Village Super vs. Grocery Outlet Holding | Village Super vs. Weis Markets |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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