Correlation Between Old Dominion and Savers Value
Can any of the company-specific risk be diversified away by investing in both Old Dominion and Savers Value 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 Old Dominion and Savers Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Dominion Freight and Savers Value Village,, you can compare the effects of market volatilities on Old Dominion and Savers Value 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 Old Dominion with a short position of Savers Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Dominion and Savers Value.
Diversification Opportunities for Old Dominion and Savers Value
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Old and Savers is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Old Dominion Freight and Savers Value Village, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savers Value Village, and Old Dominion 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 Old Dominion Freight are associated (or correlated) with Savers Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savers Value Village, has no effect on the direction of Old Dominion i.e., Old Dominion and Savers Value go up and down completely randomly.
Pair Corralation between Old Dominion and Savers Value
Given the investment horizon of 90 days Old Dominion Freight is expected to generate 0.76 times more return on investment than Savers Value. However, Old Dominion Freight is 1.32 times less risky than Savers Value. It trades about 0.16 of its potential returns per unit of risk. Savers Value Village, is currently generating about -0.06 per unit of risk. If you would invest 20,382 in Old Dominion Freight on August 31, 2024 and sell it today you would earn a total of 2,029 from holding Old Dominion Freight or generate 9.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Dominion Freight vs. Savers Value Village,
Performance |
| Timeline |
| Old Dominion Freight |
| Savers Value Village, |
Old Dominion and Savers Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Dominion and Savers Value
The main advantage of trading using opposite Old Dominion and Savers Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Dominion position performs unexpectedly, Savers Value 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 Savers Value will offset losses from the drop in Savers Value's long position.| Old Dominion vs. ArcBest Corp | Old Dominion vs. Marten Transport | Old Dominion vs. Werner Enterprises | Old Dominion vs. Knight Transportation |
| Savers Value vs. American Axle Manufacturing | Savers Value vs. Visteon Corp | Savers Value vs. PACCAR Inc | Savers Value vs. SEI Investments |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |