Correlation Between Village Super and NCR Corp
Can any of the company-specific risk be diversified away by investing in both Village Super and NCR Corp 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 NCR Corp 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 NCR Corp Pref, you can compare the effects of market volatilities on Village Super and NCR Corp 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 NCR Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Super and NCR Corp.
Diversification Opportunities for Village Super and NCR Corp
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Village and NCR is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Village Super Market and NCR Corp Pref in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Corp Pref 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 NCR Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Corp Pref has no effect on the direction of Village Super i.e., Village Super and NCR Corp go up and down completely randomly.
Pair Corralation between Village Super and NCR Corp
Assuming the 90 days horizon Village Super is expected to generate 1.54 times less return on investment than NCR Corp. But when comparing it to its historical volatility, Village Super Market is 1.28 times less risky than NCR Corp. It trades about 0.05 of its potential returns per unit of risk. NCR Corp Pref is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 81,472 in NCR Corp Pref on September 3, 2024 and sell it today you would earn a total of 35,653 from holding NCR Corp Pref or generate 43.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 61.62% |
| Values | Daily Returns |
Village Super Market vs. NCR Corp Pref
Performance |
| Timeline |
| Village Super Market |
| NCR Corp Pref |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Village Super and NCR Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Village Super and NCR Corp
The main advantage of trading using opposite Village Super and NCR Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Super position performs unexpectedly, NCR Corp 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 NCR Corp will offset losses from the drop in NCR Corp'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 |
| NCR Corp vs. Lifevantage | NCR Corp vs. Tyson Foods | NCR Corp vs. Asbury Automotive Group | NCR Corp vs. Village Super Market |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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