Correlation Between Savers Value and GrowGeneration Corp
Can any of the company-specific risk be diversified away by investing in both Savers Value and GrowGeneration Corp 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 Savers Value and GrowGeneration Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Savers Value Village, and GrowGeneration Corp, you can compare the effects of market volatilities on Savers Value and GrowGeneration Corp 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 Savers Value with a short position of GrowGeneration Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Savers Value and GrowGeneration Corp.
Diversification Opportunities for Savers Value and GrowGeneration Corp
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Savers and GrowGeneration is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Savers Value Village, and GrowGeneration Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GrowGeneration Corp and Savers Value 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 Savers Value Village, are associated (or correlated) with GrowGeneration Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GrowGeneration Corp has no effect on the direction of Savers Value i.e., Savers Value and GrowGeneration Corp go up and down completely randomly.
Pair Corralation between Savers Value and GrowGeneration Corp
Considering the 90-day investment horizon Savers Value Village, is expected to under-perform the GrowGeneration Corp. But the stock apears to be less risky and, when comparing its historical volatility, Savers Value Village, is 1.11 times less risky than GrowGeneration Corp. The stock trades about -0.05 of its potential returns per unit of risk. The GrowGeneration Corp is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 252.00 in GrowGeneration Corp on August 28, 2024 and sell it today you would lose (55.00) from holding GrowGeneration Corp or give up 21.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Savers Value Village, vs. GrowGeneration Corp
Performance |
| Timeline |
| Savers Value Village, |
| GrowGeneration Corp |
Savers Value and GrowGeneration Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Savers Value and GrowGeneration Corp
The main advantage of trading using opposite Savers Value and GrowGeneration Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savers Value position performs unexpectedly, GrowGeneration Corp 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 GrowGeneration Corp will offset losses from the drop in GrowGeneration Corp's long position.| Savers Value vs. Yuexiu Transport Infrastructure | Savers Value vs. Encore Capital Group | Savers Value vs. KeyCorp | Savers Value vs. ACG Metals Limited |
| GrowGeneration Corp vs. Evgo Inc | GrowGeneration Corp vs. Ulta Beauty | GrowGeneration Corp vs. Best Buy Co | GrowGeneration Corp vs. RH |
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.
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