Correlation Between Victory Supermarket and Kerur Holdings
Can any of the company-specific risk be diversified away by investing in both Victory Supermarket and Kerur Holdings 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 Kerur Holdings 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 Kerur Holdings, you can compare the effects of market volatilities on Victory Supermarket and Kerur Holdings 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 Kerur Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Victory Supermarket and Kerur Holdings.
Diversification Opportunities for Victory Supermarket and Kerur Holdings
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Victory and Kerur is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Victory Supermarket Chain and Kerur Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kerur Holdings 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 Kerur Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kerur Holdings has no effect on the direction of Victory Supermarket i.e., Victory Supermarket and Kerur Holdings go up and down completely randomly.
Pair Corralation between Victory Supermarket and Kerur Holdings
Assuming the 90 days trading horizon Victory Supermarket Chain is expected to generate 1.37 times more return on investment than Kerur Holdings. However, Victory Supermarket is 1.37 times more volatile than Kerur Holdings. It trades about 0.08 of its potential returns per unit of risk. Kerur Holdings is currently generating about 0.0 per unit of risk. If you would invest 352,425 in Victory Supermarket Chain on August 31, 2024 and sell it today you would earn a total of 179,475 from holding Victory Supermarket Chain or generate 50.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Victory Supermarket Chain vs. Kerur Holdings
Performance |
| Timeline |
| Victory Supermarket Chain |
| Kerur Holdings |
Victory Supermarket and Kerur Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Victory Supermarket and Kerur Holdings
The main advantage of trading using opposite Victory Supermarket and Kerur Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Supermarket position performs unexpectedly, Kerur Holdings 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 Kerur Holdings will offset losses from the drop in Kerur Holdings' long position.| Victory Supermarket vs. Kerur Holdings | Victory Supermarket vs. Salomon A Angel | Victory Supermarket vs. Sano Brunos Enterprises | Victory Supermarket vs. Al Bad Massuot Yitzhak |
| Kerur Holdings vs. Neto ME Holdings | Kerur Holdings vs. Scope Metals Group | Kerur Holdings vs. Delek Automotive Systems | Kerur Holdings vs. Aryt Industries |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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