Correlation Between Grocery Outlet and DIGITAL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Grocery Outlet Holding and DIGITAL RLTY TR, you can compare the effects of market volatilities on Grocery Outlet and DIGITAL 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 DIGITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and DIGITAL.
Diversification Opportunities for Grocery Outlet and DIGITAL
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grocery and DIGITAL is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and DIGITAL RLTY TR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIGITAL RLTY TR 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 DIGITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIGITAL RLTY TR has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and DIGITAL go up and down completely randomly.
Pair Corralation between Grocery Outlet and DIGITAL
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to generate 7.34 times more return on investment than DIGITAL. However, Grocery Outlet is 7.34 times more volatile than DIGITAL RLTY TR. It trades about 0.0 of its potential returns per unit of risk. DIGITAL RLTY TR is currently generating about -0.01 per unit of risk. If you would invest 2,205 in Grocery Outlet Holding on September 1, 2024 and sell it today you would lose (105.00) from holding Grocery Outlet Holding or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.06% |
| Values | Daily Returns |
Grocery Outlet Holding vs. DIGITAL RLTY TR
Performance |
| Timeline |
| Grocery Outlet Holding |
| DIGITAL RLTY TR |
Grocery Outlet and DIGITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and DIGITAL
The main advantage of trading using opposite Grocery Outlet and DIGITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, DIGITAL 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 DIGITAL will offset losses from the drop in DIGITAL'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 |
| DIGITAL vs. AEP TEX INC | DIGITAL vs. US BANK NATIONAL | DIGITAL vs. American Express | DIGITAL vs. Chevron 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |