Correlation Between Village Super and Dollar General
Can any of the company-specific risk be diversified away by investing in both Village Super and Dollar General 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 Dollar General 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 Dollar General, you can compare the effects of market volatilities on Village Super and Dollar General 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 Dollar General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Super and Dollar General.
Diversification Opportunities for Village Super and Dollar General
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Village and Dollar is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Village Super Market and Dollar General in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dollar General 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 Dollar General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dollar General has no effect on the direction of Village Super i.e., Village Super and Dollar General go up and down completely randomly.
Pair Corralation between Village Super and Dollar General
Assuming the 90 days horizon Village Super Market is expected to generate 1.14 times more return on investment than Dollar General. However, Village Super is 1.14 times more volatile than Dollar General. It trades about 0.22 of its potential returns per unit of risk. Dollar General is currently generating about -0.1 per unit of risk. If you would invest 3,141 in Village Super Market on November 2, 2024 and sell it today you would earn a total of 287.00 from holding Village Super Market or generate 9.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Village Super Market vs. Dollar General
Performance |
| Timeline |
| Village Super Market |
| Dollar General |
Village Super and Dollar General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Village Super and Dollar General
The main advantage of trading using opposite Village Super and Dollar General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Super position performs unexpectedly, Dollar General 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 Dollar General will offset losses from the drop in Dollar General'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 |
| Dollar General vs. BJs Wholesale Club | Dollar General vs. Costco Wholesale Corp | Dollar General vs. Walmart | Dollar General vs. Dollar Tree |
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 CEOs Directory module to screen CEOs from public companies around the world.
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