| GO Stock | | | USD 18.65 0.21 1.14% |
The current 90-days correlation between Grocery Outlet Holding and Village Super Market is 0.39 (i.e., Weak diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Grocery Outlet moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Grocery Outlet Holding moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
Grocery Outlet Correlation With Market
Very weak diversification
The correlation between Grocery Outlet Holding and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and DJI in the same portfolio, assuming nothing else is changed.
Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Grocery Outlet Holding. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in persons.
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations | | High negative correlations |
Risk-Adjusted IndicatorsThere is a big difference between Grocery Stock performing well and Grocery Outlet Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Grocery Outlet's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.