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
Pair Corralation between Grocery Outlet and Antero Resources
Grocery Outlet Holding vs. Antero Resources Corp
Grocery Outlet and Antero Resources Volatility Contrast
Pair Trading with Grocery Outlet and Antero ResourcesThe 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.
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.