As yeebsy has said this is also possible in Premiere and I'm sure most packages with more than one video track. You can do something simple like reducing the opacity by placing one video clip on one track and another video clip on the track either above or below, depending on the software. Then just select one of the clips and change the opacity from 100% down to 50 or less. You could also try blend modes that would change the colours and give some very weird paint effects, negative, solarisation and posterisation could also be used.
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