Correlation Between Virco Manufacturing and KROGER
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By analyzing existing cross correlation between Virco Manufacturing and KROGER CO, you can compare the effects of market volatilities on Virco Manufacturing and KROGER 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 Virco Manufacturing with a short position of KROGER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virco Manufacturing and KROGER.
Diversification Opportunities for Virco Manufacturing and KROGER
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Virco and KROGER is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Virco Manufacturing and KROGER CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KROGER CO and Virco Manufacturing 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 Virco Manufacturing are associated (or correlated) with KROGER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KROGER CO has no effect on the direction of Virco Manufacturing i.e., Virco Manufacturing and KROGER go up and down completely randomly.
Pair Corralation between Virco Manufacturing and KROGER
Given the investment horizon of 90 days Virco Manufacturing is expected to generate 2.61 times more return on investment than KROGER. However, Virco Manufacturing is 2.61 times more volatile than KROGER CO. It trades about 0.07 of its potential returns per unit of risk. KROGER CO is currently generating about -0.09 per unit of risk. If you would invest 1,469 in Virco Manufacturing on September 3, 2024 and sell it today you would earn a total of 173.00 from holding Virco Manufacturing or generate 11.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.13% |
| Values | Daily Returns |
Virco Manufacturing vs. KROGER CO
Performance |
| Timeline |
| Virco Manufacturing |
| KROGER CO |
Virco Manufacturing and KROGER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virco Manufacturing and KROGER
The main advantage of trading using opposite Virco Manufacturing and KROGER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virco Manufacturing position performs unexpectedly, KROGER 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 KROGER will offset losses from the drop in KROGER's long position.| Virco Manufacturing vs. Bassett Furniture Industries | Virco Manufacturing vs. Hooker Furniture | Virco Manufacturing vs. Natuzzi SpA | Virco Manufacturing vs. Flexsteel 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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