Correlation Between Grocery Outlet and Antero Resources

Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Antero Resources 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 Grocery Outlet and Antero Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grocery Outlet Holding and Antero Resources Corp, you can compare the effects of market volatilities on Grocery Outlet and Antero Resources 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 Antero Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Antero Resources.

Diversification Opportunities for Grocery Outlet and Antero Resources

Pay attention - limited upside

The 3 months correlation between Grocery and Antero is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Antero Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antero Resources Corp 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 Antero Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antero Resources Corp has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Antero Resources go up and down completely randomly.

Pair Corralation between Grocery Outlet and Antero Resources

If you would invest  0.00  in Grocery Outlet Holding on September 2, 2023 and sell it today you would earn a total of  0.00  from holding Grocery Outlet Holding or generate 0.0% return on investment over 90 days.

Grocery Outlet Holding  vs.  Antero Resources Corp

Grocery Outlet Holding

Grocery Performance

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Over the last 90 days Grocery Outlet Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Grocery Outlet is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the insiders.

Antero Resources Corp

Antero Performance

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Over the last 90 days Antero Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Grocery Outlet and Antero Resources

The main advantage of trading using opposite Grocery Outlet and Antero Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grocery Outlet position performs unexpectedly, Antero Resources 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 Antero Resources will offset losses from the drop in Antero Resources' long position.

The idea behind Grocery Outlet Holding and Antero Resources Corp 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.

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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.