Correlation Between Grocery Outlet and Saguaro Holdings
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Saguaro 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 Saguaro 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 Saguaro Holdings Corp, you can compare the effects of market volatilities on Grocery Outlet and Saguaro 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 Saguaro Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Saguaro Holdings.
Diversification Opportunities for Grocery Outlet and Saguaro Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grocery and Saguaro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Saguaro Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saguaro Holdings 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 Saguaro Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saguaro Holdings Corp has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Saguaro Holdings go up and down completely randomly.
Pair Corralation between Grocery Outlet and Saguaro Holdings
If you would invest 1,441 in Grocery Outlet Holding on September 4, 2024 and sell it today you would earn a total of 539.00 from holding Grocery Outlet Holding or generate 37.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grocery Outlet Holding vs. Saguaro Holdings Corp
Performance |
| Timeline |
| Grocery Outlet Holding |
| Saguaro Holdings Corp |
Grocery Outlet and Saguaro Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and Saguaro Holdings
The main advantage of trading using opposite Grocery Outlet and Saguaro Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, Saguaro 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 Saguaro Holdings will offset losses from the drop in Saguaro 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 |
| Saguaro Holdings vs. Grocery Outlet Holding | Saguaro Holdings vs. Titan Machinery | Saguaro Holdings vs. RadNet Inc | Saguaro Holdings vs. Lululemon Athletica |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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