Correlation Between Victory Supermarket and Creative Media
Can any of the company-specific risk be diversified away by investing in both Victory Supermarket and Creative Media 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 Creative Media 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 Creative Media Community, you can compare the effects of market volatilities on Victory Supermarket and Creative Media 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 Creative Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Supermarket and Creative Media.
Diversification Opportunities for Victory Supermarket and Creative Media
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Victory and Creative is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Victory Supermarket Chain and Creative Media Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creative Media Community 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 Creative Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creative Media Community has no effect on the direction of Victory Supermarket i.e., Victory Supermarket and Creative Media go up and down completely randomly.
Pair Corralation between Victory Supermarket and Creative Media
Assuming the 90 days trading horizon Victory Supermarket Chain is expected to generate 0.32 times more return on investment than Creative Media. However, Victory Supermarket Chain is 3.17 times less risky than Creative Media. It trades about 0.12 of its potential returns per unit of risk. Creative Media Community is currently generating about -0.21 per unit of risk. If you would invest 360,611 in Victory Supermarket Chain on August 25, 2024 and sell it today you would earn a total of 169,389 from holding Victory Supermarket Chain or generate 46.97% 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. Creative Media Community
Performance |
| Timeline |
| Victory Supermarket Chain |
| Creative Media Community |
Victory Supermarket and Creative Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Supermarket and Creative Media
The main advantage of trading using opposite Victory Supermarket and Creative Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Supermarket position performs unexpectedly, Creative Media 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 Creative Media will offset losses from the drop in Creative Media's long position.| Victory Supermarket vs. Rami Levi | Victory Supermarket vs. Strauss Group | Victory Supermarket vs. Kerur Holdings | Victory Supermarket vs. M Yochananof and |
| Creative Media vs. Victory Supermarket Chain | Creative Media vs. Global Knafaim Leasing | Creative Media vs. Millennium Food Tech LP | Creative Media vs. Magic Software Enterprises |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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