Correlation Between Rivian Automotive and Village Super
Can any of the company-specific risk be diversified away by investing in both Rivian Automotive 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 Rivian Automotive and Village Super into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rivian Automotive and Village Super Market, you can compare the effects of market volatilities on Rivian Automotive 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 Rivian Automotive with a short position of Village Super. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rivian Automotive and Village Super.
Diversification Opportunities for Rivian Automotive and Village Super
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rivian and Village is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive 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 Rivian Automotive i.e., Rivian Automotive and Village Super go up and down completely randomly.
Pair Corralation between Rivian Automotive and Village Super
Given the investment horizon of 90 days Rivian Automotive is expected to generate 1.83 times more return on investment than Village Super. However, Rivian Automotive is 1.83 times more volatile than Village Super Market. It trades about 0.14 of its potential returns per unit of risk. Village Super Market is currently generating about 0.15 per unit of risk. If you would invest 1,029 in Rivian Automotive on September 4, 2024 and sell it today you would earn a total of 158.00 from holding Rivian Automotive or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rivian Automotive vs. Village Super Market
Performance |
| Timeline |
| Rivian Automotive |
| Village Super Market |
Rivian Automotive and Village Super Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rivian Automotive and Village Super
The main advantage of trading using opposite Rivian Automotive and Village Super positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rivian Automotive 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.| Rivian Automotive vs. Tesla Inc | Rivian Automotive vs. Nio Class A | Rivian Automotive vs. Lucid Group | Rivian Automotive vs. Honda Motor Co |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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