Correlation Between Victory Supermarket and Bio Meat
Can any of the company-specific risk be diversified away by investing in both Victory Supermarket and Bio Meat 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 Victory Supermarket and Bio Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Victory Supermarket Chain and Bio Meat Foodtech, you can compare the effects of market volatilities on Victory Supermarket and Bio Meat 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 Victory Supermarket with a short position of Bio Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Supermarket and Bio Meat.
Diversification Opportunities for Victory Supermarket and Bio Meat
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Victory and Bio is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Victory Supermarket Chain and Bio Meat Foodtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Meat Foodtech and Victory Supermarket 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 Victory Supermarket Chain are associated (or correlated) with Bio Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Meat Foodtech has no effect on the direction of Victory Supermarket i.e., Victory Supermarket and Bio Meat go up and down completely randomly.
Pair Corralation between Victory Supermarket and Bio Meat
Assuming the 90 days trading horizon Victory Supermarket Chain is expected to generate 0.41 times more return on investment than Bio Meat. However, Victory Supermarket Chain is 2.45 times less risky than Bio Meat. It trades about 0.32 of its potential returns per unit of risk. Bio Meat Foodtech is currently generating about 0.1 per unit of risk. If you would invest 501,800 in Victory Supermarket Chain on September 13, 2024 and sell it today you would earn a total of 45,700 from holding Victory Supermarket Chain or generate 9.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Supermarket Chain vs. Bio Meat Foodtech
Performance |
| Timeline |
| Victory Supermarket Chain |
| Bio Meat Foodtech |
Victory Supermarket and Bio Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Supermarket and Bio Meat
The main advantage of trading using opposite Victory Supermarket and Bio Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Supermarket position performs unexpectedly, Bio Meat 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 Bio Meat will offset losses from the drop in Bio Meat's long position.| Victory Supermarket vs. Shufersal | Victory Supermarket vs. Rami Levi | Victory Supermarket vs. Tiv Taam | Victory Supermarket vs. M Yochananof and |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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