Correlation Between Grocery Outlet and Missfresh
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Missfresh 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 Missfresh 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 Missfresh Ltd ADR, you can compare the effects of market volatilities on Grocery Outlet and Missfresh 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 Missfresh. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Missfresh.
Diversification Opportunities for Grocery Outlet and Missfresh
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Grocery and Missfresh is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Missfresh Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Missfresh ADR 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 Missfresh. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Missfresh ADR has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Missfresh go up and down completely randomly.
Pair Corralation between Grocery Outlet and Missfresh
If you would invest 1,441 in Grocery Outlet Holding on September 3, 2024 and sell it today you would earn a total of 659.00 from holding Grocery Outlet Holding or generate 45.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Grocery Outlet Holding vs. Missfresh Ltd ADR
Performance |
| Timeline |
| Grocery Outlet Holding |
| Missfresh ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grocery Outlet and Missfresh Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and Missfresh
The main advantage of trading using opposite Grocery Outlet and Missfresh positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, Missfresh 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 Missfresh will offset losses from the drop in Missfresh'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 |
| Missfresh vs. Natural Grocers by | Missfresh vs. Ingles Markets Incorporated | Missfresh vs. Krispy Kreme | Missfresh vs. Grocery Outlet Holding |
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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