Correlation Between Grocery Outlet and EXXON
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By analyzing existing cross correlation between Grocery Outlet Holding and EXXON MOBIL P, you can compare the effects of market volatilities on Grocery Outlet and EXXON 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 EXXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and EXXON.
Diversification Opportunities for Grocery Outlet and EXXON
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grocery and EXXON is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and EXXON MOBIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL P 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 EXXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL P has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and EXXON go up and down completely randomly.
Pair Corralation between Grocery Outlet and EXXON
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to generate 3.49 times more return on investment than EXXON. However, Grocery Outlet is 3.49 times more volatile than EXXON MOBIL P. It trades about 0.05 of its potential returns per unit of risk. EXXON MOBIL P is currently generating about -0.1 per unit of risk. If you would invest 1,571 in Grocery Outlet Holding on October 24, 2024 and sell it today you would earn a total of 24.00 from holding Grocery Outlet Holding or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Grocery Outlet Holding vs. EXXON MOBIL P
Performance |
| Timeline |
| Grocery Outlet Holding |
| EXXON MOBIL P |
Grocery Outlet and EXXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and EXXON
The main advantage of trading using opposite Grocery Outlet and EXXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, EXXON 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 EXXON will offset losses from the drop in EXXON'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 |
| EXXON vs. United Natural Foods | EXXON vs. Grocery Outlet Holding | EXXON vs. John Wiley Sons | EXXON vs. Albertsons Companies |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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