Correlation Between Natural Grocers and Ingles Markets
Can any of the company-specific risk be diversified away by investing in both Natural Grocers and Ingles Markets 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 Natural Grocers and Ingles Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Natural Grocers by and Ingles Markets Incorporated, you can compare the effects of market volatilities on Natural Grocers and Ingles Markets 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 Natural Grocers with a short position of Ingles Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Natural Grocers and Ingles Markets.
Diversification Opportunities for Natural Grocers and Ingles Markets
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Natural and Ingles is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Natural Grocers by and Ingles Markets Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingles Markets rporated and Natural Grocers 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 Natural Grocers by are associated (or correlated) with Ingles Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingles Markets rporated has no effect on the direction of Natural Grocers i.e., Natural Grocers and Ingles Markets go up and down completely randomly.
Pair Corralation between Natural Grocers and Ingles Markets
Given the investment horizon of 90 days Natural Grocers by is expected to under-perform the Ingles Markets. In addition to that, Natural Grocers is 2.31 times more volatile than Ingles Markets Incorporated. It trades about -0.08 of its total potential returns per unit of risk. Ingles Markets Incorporated is currently generating about -0.05 per unit of volatility. If you would invest 7,415 in Ingles Markets Incorporated on January 18, 2024 and sell it today you would lose (88.00) from holding Ingles Markets Incorporated or give up 1.19% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Natural Grocers by vs. Ingles Markets Incorporated
Performance |
Timeline |
Natural Grocers by |
Ingles Markets rporated |
Natural Grocers and Ingles Markets Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Natural Grocers and Ingles Markets
The main advantage of trading using opposite Natural Grocers and Ingles Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Natural Grocers position performs unexpectedly, Ingles Markets 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 Ingles Markets will offset losses from the drop in Ingles Markets' long position.Natural Grocers vs. Weis Markets | Natural Grocers vs. Ingles Markets Incorporated | Natural Grocers vs. Sendas Distribuidora SA | Natural Grocers vs. Grocery Outlet Holding |
Ingles Markets vs. Weis Markets | Ingles Markets vs. Natural Grocers by | Ingles Markets vs. Sendas Distribuidora SA | Ingles Markets vs. Grocery Outlet Holding |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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