Correlation Between Grocery Outlet and KIMBERLY
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By analyzing existing cross correlation between Grocery Outlet Holding and KIMBERLY CLARK P, you can compare the effects of market volatilities on Grocery Outlet and KIMBERLY 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 KIMBERLY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and KIMBERLY.
Diversification Opportunities for Grocery Outlet and KIMBERLY
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grocery and KIMBERLY is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and KIMBERLY CLARK P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIMBERLY CLARK 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 KIMBERLY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIMBERLY CLARK P has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and KIMBERLY go up and down completely randomly.
Pair Corralation between Grocery Outlet and KIMBERLY
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to generate 2.24 times more return on investment than KIMBERLY. However, Grocery Outlet is 2.24 times more volatile than KIMBERLY CLARK P. It trades about 0.44 of its potential returns per unit of risk. KIMBERLY CLARK P is currently generating about 0.21 per unit of risk. If you would invest 1,505 in Grocery Outlet Holding on September 2, 2024 and sell it today you would earn a total of 595.00 from holding Grocery Outlet Holding or generate 39.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 76.19% |
| Values | Daily Returns |
Grocery Outlet Holding vs. KIMBERLY CLARK P
Performance |
| Timeline |
| Grocery Outlet Holding |
| KIMBERLY CLARK P |
Grocery Outlet and KIMBERLY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and KIMBERLY
The main advantage of trading using opposite Grocery Outlet and KIMBERLY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, KIMBERLY 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 KIMBERLY will offset losses from the drop in KIMBERLY'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 |
| KIMBERLY vs. Aegon NV ADR | KIMBERLY vs. Citizens | KIMBERLY vs. Sun Life Financial | KIMBERLY vs. Grocery Outlet Holding |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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