Correlation Between Grocery Outlet and Urban Barns
Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Urban Barns 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 Urban Barns 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 Urban Barns Foods, you can compare the effects of market volatilities on Grocery Outlet and Urban Barns 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 Urban Barns. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Urban Barns.
Diversification Opportunities for Grocery Outlet and Urban Barns
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grocery and Urban is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Urban Barns Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urban Barns Foods 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 Urban Barns. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urban Barns Foods has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Urban Barns go up and down completely randomly.
Pair Corralation between Grocery Outlet and Urban Barns
If you would invest 1,430 in Grocery Outlet Holding on September 1, 2024 and sell it today you would earn a total of 670.00 from holding Grocery Outlet Holding or generate 46.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Grocery Outlet Holding vs. Urban Barns Foods
Performance |
| Timeline |
| Grocery Outlet Holding |
| Urban Barns Foods |
Grocery Outlet and Urban Barns Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and Urban Barns
The main advantage of trading using opposite Grocery Outlet and Urban Barns positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, Urban Barns 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 Urban Barns will offset losses from the drop in Urban Barns' 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 |
| Urban Barns vs. Xponential Fitness | Urban Barns vs. ATRenew Inc DRC | Urban Barns vs. Meiwu Technology Co | Urban Barns vs. Playtika Holding Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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