Correlation Between Grocery Outlet and Astera Labs,

Can any of the company-specific risk be diversified away by investing in both Grocery Outlet and Astera Labs, 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 Astera Labs, 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 Astera Labs, Common, you can compare the effects of market volatilities on Grocery Outlet and Astera Labs, 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 Astera Labs,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grocery Outlet and Astera Labs,.

Diversification Opportunities for Grocery Outlet and Astera Labs,

0.69

Correlation Coefficient

Grocery Outlet  Astera Labs,

Poor diversification

The 3 months correlation between Grocery and Astera is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Astera Labs, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astera Labs, Common 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 Astera Labs,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astera Labs, Common has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Astera Labs, go up and down completely randomly.

Pair Corralation between Grocery Outlet and Astera Labs,

Allowing for the 90-day total investment horizon Grocery Outlet is expected to generate 6.82 times less return on investment than Astera Labs,. But when comparing it to its historical volatility, Grocery Outlet Holding is 1.5 times less risky than Astera Labs,. It trades about 0.1 of its potential returns per unit of risk. Astera Labs, Common is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest  8,849  in Astera Labs, Common on September 15, 2024 and sell it today you would earn a total of  4,365  from holding Astera Labs, Common or generate 49.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Grocery Outlet Holding  vs.  Astera Labs, Common

Grocery Outlet Holding

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Grocery Outlet Holding are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Grocery Outlet displayed solid returns over the last few months and may actually be approaching a breakup point.

Astera Labs, Common

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Astera Labs, Common are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Astera Labs, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grocery Outlet and Astera Labs,

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

The idea behind Grocery Outlet Holding and Astera Labs, Common 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.