Correlation Between Grocery Outlet and NOVANT
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By analyzing existing cross correlation between Grocery Outlet Holding and NOVANT 2637 01 NOV 36, you can compare the effects of market volatilities on Grocery Outlet and NOVANT 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 NOVANT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and NOVANT.
Diversification Opportunities for Grocery Outlet and NOVANT
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grocery and NOVANT is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and NOVANT 2637 01 NOV 36 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOVANT 2637 01 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 NOVANT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOVANT 2637 01 has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and NOVANT go up and down completely randomly.
Pair Corralation between Grocery Outlet and NOVANT
Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to generate 1.56 times more return on investment than NOVANT. However, Grocery Outlet is 1.56 times more volatile than NOVANT 2637 01 NOV 36. It trades about 0.5 of its potential returns per unit of risk. NOVANT 2637 01 NOV 36 is currently generating about -0.46 per unit of risk. 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Grocery Outlet Holding vs. NOVANT 2637 01 NOV 36
Performance |
| Timeline |
| Grocery Outlet Holding |
| NOVANT 2637 01 |
Grocery Outlet and NOVANT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grocery Outlet and NOVANT
The main advantage of trading using opposite Grocery Outlet and NOVANT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, NOVANT 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 NOVANT will offset losses from the drop in NOVANT'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 |
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