Correlation Between Grocery Outlet and 655844CQ9

Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and 655844CQ9 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 655844CQ9 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 NSC 445 01 MAR 33, you can compare the effects of market volatilities on Grocery Outlet and 655844CQ9 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 655844CQ9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and 655844CQ9.

Diversification Opportunities for Grocery Outlet and 655844CQ9

-0.28

Correlation Coefficient

Grocery Outlet  655844CQ9

Very good diversification

The 3 months correlation between Grocery and 655844CQ9 is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and NSC 445 01 MAR 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSC 445 01 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 655844CQ9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSC 445 01 has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and 655844CQ9 go up and down completely randomly.

Pair Corralation between Grocery Outlet and 655844CQ9

Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to under-perform the 655844CQ9. In addition to that, Grocery Outlet is 5.27 times more volatile than NSC 445 01 MAR 33. It trades about -0.2 of its total potential returns per unit of risk. NSC 445 01 MAR 33 is currently generating about -0.33 per unit of volatility. If you would invest  9,725  in NSC 445 01 MAR 33 on October 12, 2024 and sell it today you would lose (265.00) from holding NSC 445 01 MAR 33 or give up 2.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	65.0%
Values	Daily Returns

Grocery Outlet Holding  vs.  NSC 445 01 MAR 33

Grocery Outlet Holding

Risk-Adjusted Performance

2 of 100

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 unsteady basic indicators, Grocery Outlet may actually be approaching a critical reversion point that can send shares even higher in February 2025.

NSC 445 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NSC 445 01 MAR 33 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NSC 445 01 MAR 33 investors.

Pair Trading with Grocery Outlet and 655844CQ9

The main advantage of trading using opposite Grocery Outlet and 655844CQ9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, 655844CQ9 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 655844CQ9 will offset losses from the drop in 655844CQ9's long position.

The idea behind Grocery Outlet Holding and NSC 445 01 MAR 33 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.