Correlation Between Grocery Outlet and LanzaTech Global
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and LanzaTech Global 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 LanzaTech Global 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 LanzaTech Global, you can compare the effects of market volatilities on Grocery Outlet and LanzaTech Global 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 LanzaTech Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and LanzaTech Global.
Diversification Opportunities for Grocery Outlet and LanzaTech Global
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grocery and LanzaTech is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and LanzaTech Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LanzaTech Global 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 LanzaTech Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LanzaTech Global has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and LanzaTech Global go up and down completely randomly.
Pair Corralation between Grocery Outlet and LanzaTech Global
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to generate 0.5 times more return on investment than LanzaTech Global. However, Grocery Outlet Holding is 1.99 times less risky than LanzaTech Global. It trades about 0.23 of its potential returns per unit of risk. LanzaTech Global is currently generating about -0.18 per unit of risk. If you would invest 1,661 in Grocery Outlet Holding on August 30, 2024 and sell it today you would earn a total of 464.00 from holding Grocery Outlet Holding or generate 27.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.26% |
| Values | Daily Returns |
Grocery Outlet Holding vs. LanzaTech Global
Performance |
| Timeline |
| Grocery Outlet Holding |
| LanzaTech Global |
Grocery Outlet and LanzaTech Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and LanzaTech Global
The main advantage of trading using opposite Grocery Outlet and LanzaTech Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, LanzaTech Global 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 LanzaTech Global will offset losses from the drop in LanzaTech Global's long position.| Grocery Outlet vs. Weis Markets | Grocery Outlet vs. Ingles Markets Incorporated | Grocery Outlet vs. Sendas Distribuidora SA | Grocery Outlet vs. Village Super Market |
| LanzaTech Global vs. Texas Roadhouse | LanzaTech Global vs. Paysafe | LanzaTech Global vs. Shake Shack | LanzaTech Global vs. Evertz Technologies Limited |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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