Correlation Between Grocery Outlet and Apogee Enterprises
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Apogee Enterprises 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 Apogee Enterprises 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 Apogee Enterprises, you can compare the effects of market volatilities on Grocery Outlet and Apogee Enterprises 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 Apogee Enterprises. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Apogee Enterprises.
Diversification Opportunities for Grocery Outlet and Apogee Enterprises
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grocery and Apogee is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Apogee Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apogee Enterprises 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 Apogee Enterprises. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apogee Enterprises has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Apogee Enterprises go up and down completely randomly.
Pair Corralation between Grocery Outlet and Apogee Enterprises
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to generate 1.97 times more return on investment than Apogee Enterprises. However, Grocery Outlet is 1.97 times more volatile than Apogee Enterprises. It trades about 0.44 of its potential returns per unit of risk. Apogee Enterprises is currently generating about 0.27 per unit of risk. If you would invest 1,505 in Grocery Outlet Holding on September 2, 2024 and sell it today you would earn a total of 595.00 from holding Grocery Outlet Holding or generate 39.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grocery Outlet Holding vs. Apogee Enterprises
Performance |
| Timeline |
| Grocery Outlet Holding |
| Apogee Enterprises |
Grocery Outlet and Apogee Enterprises Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and Apogee Enterprises
The main advantage of trading using opposite Grocery Outlet and Apogee Enterprises positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, Apogee Enterprises 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 Apogee Enterprises will offset losses from the drop in Apogee Enterprises' 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 |
| Apogee Enterprises vs. Quanex Building Products | Apogee Enterprises vs. Janus International Group | Apogee Enterprises vs. Interface | Apogee Enterprises vs. Azek Company |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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