Correlation Between Village Super and KRAFT
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By analyzing existing cross correlation between Village Super Market and KRAFT HEINZ FOODS, you can compare the effects of market volatilities on Village Super and KRAFT 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 KRAFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Super and KRAFT.
Diversification Opportunities for Village Super and KRAFT
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Village and KRAFT is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Village Super Market and KRAFT HEINZ FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAFT HEINZ FOODS 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 KRAFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAFT HEINZ FOODS has no effect on the direction of Village Super i.e., Village Super and KRAFT go up and down completely randomly.
Pair Corralation between Village Super and KRAFT
Assuming the 90 days horizon Village Super Market is expected to generate 2.75 times more return on investment than KRAFT. However, Village Super is 2.75 times more volatile than KRAFT HEINZ FOODS. It trades about 0.05 of its potential returns per unit of risk. KRAFT HEINZ FOODS is currently generating about -0.03 per unit of risk. If you would invest 2,848 in Village Super Market on September 3, 2024 and sell it today you would earn a total of 389.00 from holding Village Super Market or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.63% |
| Values | Daily Returns |
Village Super Market vs. KRAFT HEINZ FOODS
Performance |
| Timeline |
| Village Super Market |
| KRAFT HEINZ FOODS |
Village Super and KRAFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Village Super and KRAFT
The main advantage of trading using opposite Village Super and KRAFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Super position performs unexpectedly, KRAFT 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 KRAFT will offset losses from the drop in KRAFT'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 |
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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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