Correlation Between Grocery Outlet and Joint Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Joint 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 Grocery Outlet and Joint Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grocery Outlet Holding and The Joint Corp, you can compare the effects of market volatilities on Grocery Outlet and Joint 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 Grocery Outlet with a short position of Joint Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Joint Corp.

Diversification Opportunities for Grocery Outlet and Joint Corp

0.49
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Grocery and Joint is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and The Joint Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Corp and Grocery Outlet 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 Grocery Outlet Holding are associated (or correlated) with Joint Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Corp has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Joint Corp go up and down completely randomly.

Pair Corralation between Grocery Outlet and Joint Corp

Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to under-perform the Joint Corp. But the stock apears to be less risky and, when comparing its historical volatility, Grocery Outlet Holding is 1.28 times less risky than Joint Corp. The stock trades about -0.05 of its potential returns per unit of risk. The The Joint Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  862.00  in The Joint Corp on September 23, 2024 and sell it today you would earn a total of  165.00  from holding The Joint Corp or generate 19.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Grocery Outlet Holding  vs.  The Joint Corp

 Performance 
       Timeline  
Grocery Outlet Holding 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Grocery Outlet Holding are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Grocery Outlet may actually be approaching a critical reversion point that can send shares even higher in January 2025.
Joint Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days The Joint Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Joint Corp is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Grocery Outlet and Joint Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Grocery Outlet and Joint Corp

The main advantage of trading using opposite Grocery Outlet and Joint Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, Joint 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 Joint Corp will offset losses from the drop in Joint Corp's long position.
The idea behind Grocery Outlet Holding and The Joint Corp 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.
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..

Other Complementary Tools

Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account