Correlation Between VSE and Driven Brands
Can any of the company-specific risk be diversified away by investing in both VSE and Driven Brands 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 VSE and Driven Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VSE Corporation and Driven Brands Holdings, you can compare the effects of market volatilities on VSE and Driven Brands 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 VSE with a short position of Driven Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of VSE and Driven Brands.
Diversification Opportunities for VSE and Driven Brands
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VSE and Driven is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding VSE Corp. and Driven Brands Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Driven Brands Holdings and VSE 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 VSE Corporation are associated (or correlated) with Driven Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Driven Brands Holdings has no effect on the direction of VSE i.e., VSE and Driven Brands go up and down completely randomly.
Pair Corralation between VSE and Driven Brands
Given the investment horizon of 90 days VSE Corporation is expected to generate 1.04 times more return on investment than Driven Brands. However, VSE is 1.04 times more volatile than Driven Brands Holdings. It trades about 0.05 of its potential returns per unit of risk. Driven Brands Holdings is currently generating about -0.18 per unit of risk. If you would invest 16,497 in VSE Corporation on August 27, 2025 and sell it today you would earn a total of 998.00 from holding VSE Corporation or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VSE Corp. vs. Driven Brands Holdings
Performance |
| Timeline |
| VSE Corporation |
| Driven Brands Holdings |
VSE and Driven Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VSE and Driven Brands
The main advantage of trading using opposite VSE and Driven Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VSE position performs unexpectedly, Driven Brands 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 Driven Brands will offset losses from the drop in Driven Brands' long position.| VSE vs. Affinity Beverage Group | VSE vs. Vulcan Materials | VSE vs. Martin Marietta Materials | VSE vs. Suntory Beverage Food |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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