Correlation Between Grocery Outlet and Ardent Leisure
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Ardent Leisure 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 Ardent Leisure 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 Ardent Leisure Group, you can compare the effects of market volatilities on Grocery Outlet and Ardent Leisure 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 Ardent Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Ardent Leisure.
Diversification Opportunities for Grocery Outlet and Ardent Leisure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grocery and Ardent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Ardent Leisure Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardent Leisure Group 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 Ardent Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardent Leisure Group has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Ardent Leisure go up and down completely randomly.
Pair Corralation between Grocery Outlet and Ardent Leisure
If you would invest (100.00) in Ardent Leisure Group on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Ardent Leisure Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Grocery Outlet Holding vs. Ardent Leisure Group
Performance |
| Timeline |
| Grocery Outlet Holding |
| Ardent Leisure Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grocery Outlet and Ardent Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and Ardent Leisure
The main advantage of trading using opposite Grocery Outlet and Ardent Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, Ardent Leisure 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 Ardent Leisure will offset losses from the drop in Ardent Leisure's long position.| Grocery Outlet vs. Natural Grocers by | Grocery Outlet vs. Village Super Market | Grocery Outlet vs. Ingles Markets Incorporated | Grocery Outlet vs. Ocado Group plc |
| Ardent Leisure vs. Kaiser Aluminum | Ardent Leisure vs. Allegheny Technologies Incorporated | Ardent Leisure vs. Dominos Pizza | Ardent Leisure vs. Dalata Hotel Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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