Correlation Between Forum Energy and Grocery Outlet
Can any of the company-specific risk be diversified away by investing in both Forum Energy and Grocery Outlet 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 Forum Energy and Grocery Outlet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forum Energy Technologies and Grocery Outlet Holding, you can compare the effects of market volatilities on Forum Energy 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 Forum Energy with a short position of Grocery Outlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forum Energy and Grocery Outlet.
Diversification Opportunities for Forum Energy and Grocery Outlet
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Forum and Grocery is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Forum Energy Technologies 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 Forum Energy 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 Forum Energy Technologies 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 Forum Energy i.e., Forum Energy and Grocery Outlet go up and down completely randomly.
Pair Corralation between Forum Energy and Grocery Outlet
Considering the 90-day investment horizon Forum Energy Technologies is expected to generate 1.46 times more return on investment than Grocery Outlet. However, Forum Energy is 1.46 times more volatile than Grocery Outlet Holding. It trades about 0.12 of its potential returns per unit of risk. Grocery Outlet Holding is currently generating about -0.28 per unit of risk. If you would invest 2,376 in Forum Energy Technologies on August 18, 2025 and sell it today you would earn a total of 641.00 from holding Forum Energy Technologies or generate 26.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forum Energy Technologies vs. Grocery Outlet Holding
Performance |
| Timeline |
| Forum Energy Technologies |
| Grocery Outlet Holding |
Forum Energy and Grocery Outlet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forum Energy and Grocery Outlet
The main advantage of trading using opposite Forum Energy and Grocery Outlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forum Energy 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.| Forum Energy vs. Trio Petroleum Corp | Forum Energy vs. Sky Quarry | Forum Energy vs. PTL LTD Ordinary | Forum Energy vs. Robin Energy |
| Grocery Outlet vs. Ingles Markets Incorporated | Grocery Outlet vs. Weis Markets | Grocery Outlet vs. Vital Farms | Grocery Outlet vs. Coursera |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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