Correlation Between APPLE and Grocery Outlet
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By analyzing existing cross correlation between APPLE INC 335 and Grocery Outlet Holding, you can compare the effects of market volatilities on APPLE and Grocery Outlet 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 APPLE with a short position of Grocery Outlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of APPLE and Grocery Outlet.
Diversification Opportunities for APPLE and Grocery Outlet
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between APPLE and Grocery is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding APPLE INC 335 and Grocery Outlet Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grocery Outlet Holding and APPLE 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 APPLE INC 335 are associated (or correlated) with Grocery Outlet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grocery Outlet Holding has no effect on the direction of APPLE i.e., APPLE and Grocery Outlet go up and down completely randomly.
Pair Corralation between APPLE and Grocery Outlet
Assuming the 90 days trading horizon APPLE INC 335 is expected to under-perform the Grocery Outlet. But the bond apears to be less risky and, when comparing its historical volatility, APPLE INC 335 is 8.63 times less risky than Grocery Outlet. The bond trades about -0.15 of its potential returns per unit of risk. The Grocery Outlet Holding is currently generating about 0.44 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
APPLE INC 335 vs. Grocery Outlet Holding
Performance |
| Timeline |
| APPLE INC 335 |
| Grocery Outlet Holding |
APPLE and Grocery Outlet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with APPLE and Grocery Outlet
The main advantage of trading using opposite APPLE and Grocery Outlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if APPLE position performs unexpectedly, Grocery Outlet 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 Grocery Outlet will offset losses from the drop in Grocery Outlet's long position.The idea behind APPLE INC 335 and Grocery Outlet Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Grocery Outlet vs. Natural Grocers by | Grocery Outlet vs. Village Super Market | Grocery Outlet vs. Ingles Markets Incorporated | Grocery Outlet vs. Ocado Group plc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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