Correlation Between Village Super and Integrys Holding

Can any of the company-specific risk be diversified away by investing in both Village Super and Integrys Holding 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 Integrys Holding 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 Integrys Holding, you can compare the effects of market volatilities on Village Super and Integrys Holding 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 Integrys Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Super and Integrys Holding.

Diversification Opportunities for Village Super and Integrys Holding

0.0

Correlation Coefficient

Village Super  Integrys Holding

Pay attention - limited upside

The 3 months correlation between Village and Integrys is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Village Super Market and Integrys Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrys Holding 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 Integrys Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrys Holding has no effect on the direction of Village Super i.e., Village Super and Integrys Holding go up and down completely randomly.

Pair Corralation between Village Super and Integrys Holding

If you would invest  2,175  in Village Super Market on February 6, 2024 and sell it today you would earn a total of  690.00  from holding Village Super Market or generate 31.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Village Super Market  vs.  Integrys Holding

Village Super Market

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Village Super Market are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal technical and fundamental indicators, Village Super sustained solid returns over the last few months and may actually be approaching a breakup point.

Integrys Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integrys Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Integrys Holding is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Village Super and Integrys Holding

The main advantage of trading using opposite Village Super and Integrys Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Super position performs unexpectedly, Integrys Holding 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 Integrys Holding will offset losses from the drop in Integrys Holding's long position.

The idea behind Village Super Market and Integrys Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.