Correlation Between Grocery Outlet and PhenomeX
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and PhenomeX 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 PhenomeX 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 PhenomeX, you can compare the effects of market volatilities on Grocery Outlet and PhenomeX 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 PhenomeX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and PhenomeX.
Diversification Opportunities for Grocery Outlet and PhenomeX
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grocery and PhenomeX is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and PhenomeX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PhenomeX 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 PhenomeX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PhenomeX has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and PhenomeX go up and down completely randomly.
Pair Corralation between Grocery Outlet and PhenomeX
If you would invest 60.00 in PhenomeX on October 21, 2024 and sell it today you would earn a total of 0.00 from holding PhenomeX or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Grocery Outlet Holding vs. PhenomeX
Performance |
| Timeline |
| Grocery Outlet Holding |
| PhenomeX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grocery Outlet and PhenomeX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and PhenomeX
The main advantage of trading using opposite Grocery Outlet and PhenomeX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, PhenomeX 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 PhenomeX will offset losses from the drop in PhenomeX'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 |
| PhenomeX vs. Centessa Pharmaceuticals PLC | PhenomeX vs. Abcellera Biologics | PhenomeX vs. Catalyst Pharmaceuticals | PhenomeX vs. Gatos Silver |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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