Correlation Between Grocery Outlet and Leafly Holdings
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Leafly Holdings 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 Leafly Holdings 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 Leafly Holdings, you can compare the effects of market volatilities on Grocery Outlet and Leafly Holdings 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 Leafly Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Leafly Holdings.
Diversification Opportunities for Grocery Outlet and Leafly Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grocery and Leafly is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Leafly Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafly Holdings 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 Leafly Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafly Holdings has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Leafly Holdings go up and down completely randomly.
Pair Corralation between Grocery Outlet and Leafly Holdings
If you would invest 1,595 in Grocery Outlet Holding on November 18, 2024 and sell it today you would earn a total of 73.00 from holding Grocery Outlet Holding or generate 4.58% 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. Leafly Holdings
Performance |
| Timeline |
| Grocery Outlet Holding |
| Leafly Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Grocery Outlet and Leafly Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and Leafly Holdings
The main advantage of trading using opposite Grocery Outlet and Leafly Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, Leafly Holdings 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 Leafly Holdings will offset losses from the drop in Leafly Holdings' 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 |
| Leafly Holdings vs. WM Technology | Leafly Holdings vs. Revelation Biosciences | Leafly Holdings vs. AEye Inc |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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