Correlation Between Village Super and Dana
Can any of the company-specific risk be diversified away by investing in both Village Super and Dana 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 Village Super and Dana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Village Super Market and Dana Inc, you can compare the effects of market volatilities on Village Super and Dana 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 Village Super with a short position of Dana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Super and Dana.
Diversification Opportunities for Village Super and Dana
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Village and Dana is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Village Super Market and Dana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dana Inc and Village Super 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 Village Super Market are associated (or correlated) with Dana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dana Inc has no effect on the direction of Village Super i.e., Village Super and Dana go up and down completely randomly.
Pair Corralation between Village Super and Dana
Assuming the 90 days horizon Village Super is expected to generate 3.91 times less return on investment than Dana. But when comparing it to its historical volatility, Village Super Market is 1.21 times less risky than Dana. It trades about 0.15 of its potential returns per unit of risk. Dana Inc is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 763.00 in Dana Inc on September 4, 2024 and sell it today you would earn a total of 370.00 from holding Dana Inc or generate 48.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Village Super Market vs. Dana Inc
Performance |
| Timeline |
| Village Super Market |
| Dana Inc |
Village Super and Dana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Village Super and Dana
The main advantage of trading using opposite Village Super and Dana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Super position performs unexpectedly, Dana 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 Dana will offset losses from the drop in Dana's long position.| Village Super vs. Ingles Markets Incorporated | Village Super vs. Natural Grocers by | Village Super vs. Grocery Outlet Holding | Village Super vs. Weis Markets |
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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