Correlation Between SVB Financial and Dollar General
Can any of the company-specific risk be diversified away by investing in both SVB Financial and Dollar General 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 SVB Financial and Dollar General into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVB Financial Group and Dollar General, you can compare the effects of market volatilities on SVB Financial and Dollar General 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 SVB Financial with a short position of Dollar General. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVB Financial and Dollar General.
Diversification Opportunities for SVB Financial and Dollar General
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SVB and Dollar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVB Financial Group and Dollar General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar General and SVB Financial 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 SVB Financial Group are associated (or correlated) with Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of SVB Financial i.e., SVB Financial and Dollar General go up and down completely randomly.
Pair Corralation between SVB Financial and Dollar General
If you would invest 1,944 in Dollar General on September 1, 2024 and sell it today you would lose (6.00) from holding Dollar General or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
SVB Financial Group vs. Dollar General
Performance |
| Timeline |
| SVB Financial Group |
| Dollar General |
SVB Financial and Dollar General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVB Financial and Dollar General
The main advantage of trading using opposite SVB Financial and Dollar General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVB Financial position performs unexpectedly, Dollar General 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 Dollar General will offset losses from the drop in Dollar General's long position.| SVB Financial vs. Ita Unibanco Holding | SVB Financial vs. Banco Santander SA | SVB Financial vs. Itasa Investimentos |
| Dollar General vs. Brpr Corporate Offices | Dollar General vs. Spotify Technology SA | Dollar General vs. Technos SA | Dollar General vs. Uber Technologies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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