Correlation Between Assurant and Grocery Outlet
Can any of the company-specific risk be diversified away by investing in both Assurant and Grocery Outlet 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 Assurant and Grocery Outlet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assurant and Grocery Outlet Holding, you can compare the effects of market volatilities on Assurant and Grocery Outlet 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 Assurant with a short position of Grocery Outlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assurant and Grocery Outlet.
Diversification Opportunities for Assurant and Grocery Outlet
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Assurant and Grocery is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Assurant and Grocery Outlet Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grocery Outlet Holding and Assurant 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 Assurant are associated (or correlated) with Grocery Outlet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grocery Outlet Holding has no effect on the direction of Assurant i.e., Assurant and Grocery Outlet go up and down completely randomly.
Pair Corralation between Assurant and Grocery Outlet
Considering the 90-day investment horizon Assurant is expected to generate 0.52 times more return on investment than Grocery Outlet. However, Assurant is 1.92 times less risky than Grocery Outlet. It trades about 0.12 of its potential returns per unit of risk. Grocery Outlet Holding is currently generating about -0.04 per unit of risk. If you would invest 12,627 in Assurant on September 12, 2024 and sell it today you would earn a total of 9,004 from holding Assurant or generate 71.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assurant vs. Grocery Outlet Holding
Performance |
| Timeline |
| Assurant |
| Grocery Outlet Holding |
Assurant and Grocery Outlet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assurant and Grocery Outlet
The main advantage of trading using opposite Assurant and Grocery Outlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assurant position performs unexpectedly, Grocery Outlet 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 Grocery Outlet will offset losses from the drop in Grocery Outlet's long position.| Assurant vs. Assured Guaranty | Assurant vs. Ambac Financial Group | Assurant vs. AMERISAFE | Assurant vs. Enact Holdings |
| Grocery Outlet vs. Natural Grocers by | Grocery Outlet vs. Village Super Market | Grocery Outlet vs. Ingles Markets Incorporated | Grocery Outlet vs. Ocado Group plc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |