Correlation Between Grocery Outlet and Nextplat Corp
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp, you can compare the effects of market volatilities on Grocery Outlet and Nextplat Corp 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 Nextplat Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Nextplat Corp.
Diversification Opportunities for Grocery Outlet and Nextplat Corp
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grocery and Nextplat is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Nextplat Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nextplat Corp 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 Nextplat Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nextplat Corp has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Nextplat Corp go up and down completely randomly.
Pair Corralation between Grocery Outlet and Nextplat Corp
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to under-perform the Nextplat Corp. But the stock apears to be less risky and, when comparing its historical volatility, Grocery Outlet Holding is 2.12 times less risky than Nextplat Corp. The stock trades about -0.02 of its potential returns per unit of risk. The Nextplat Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 142.00 in Nextplat Corp on September 3, 2024 and sell it today you would lose (63.00) from holding Nextplat Corp or give up 44.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grocery Outlet Holding vs. Nextplat Corp
Performance |
| Timeline |
| Grocery Outlet Holding |
| Nextplat Corp |
Grocery Outlet and Nextplat Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and Nextplat Corp
The main advantage of trading using opposite Grocery Outlet and Nextplat Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, Nextplat Corp 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 Nextplat Corp will offset losses from the drop in Nextplat Corp'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 |
| Nextplat Corp vs. RenoWorks Software | Nextplat Corp vs. LifeSpeak | Nextplat Corp vs. 01 Communique Laboratory | Nextplat Corp vs. Where Food Comes |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |