Correlation Between Victory Supermarket and Batm Advanced
Can any of the company-specific risk be diversified away by investing in both Victory Supermarket and Batm Advanced 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 Batm Advanced 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 Batm Advanced Communications, you can compare the effects of market volatilities on Victory Supermarket and Batm Advanced 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 Batm Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Supermarket and Batm Advanced.
Diversification Opportunities for Victory Supermarket and Batm Advanced
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Victory and Batm is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Victory Supermarket Chain and Batm Advanced Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Batm Advanced Commun 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 Batm Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Batm Advanced Commun has no effect on the direction of Victory Supermarket i.e., Victory Supermarket and Batm Advanced go up and down completely randomly.
Pair Corralation between Victory Supermarket and Batm Advanced
Assuming the 90 days trading horizon Victory Supermarket Chain is expected to generate 1.02 times more return on investment than Batm Advanced. However, Victory Supermarket is 1.02 times more volatile than Batm Advanced Communications. It trades about 0.11 of its potential returns per unit of risk. Batm Advanced Communications is currently generating about -0.03 per unit of risk. If you would invest 388,306 in Victory Supermarket Chain on November 3, 2024 and sell it today you would earn a total of 173,994 from holding Victory Supermarket Chain or generate 44.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Supermarket Chain vs. Batm Advanced Communications
Performance |
| Timeline |
| Victory Supermarket Chain |
| Batm Advanced Commun |
Victory Supermarket and Batm Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Supermarket and Batm Advanced
The main advantage of trading using opposite Victory Supermarket and Batm Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Supermarket position performs unexpectedly, Batm Advanced 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 Batm Advanced will offset losses from the drop in Batm Advanced's long position.| Victory Supermarket vs. Shufersal | Victory Supermarket vs. Rami Levi | Victory Supermarket vs. Tiv Taam | Victory Supermarket vs. M Yochananof and |
| Batm Advanced vs. Aura Investments | Batm Advanced vs. Skyline Investments | Batm Advanced vs. One Software Technologies | Batm Advanced vs. Discount Investment Corp |
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.
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