Correlation Between First Industrial and Grocery Outlet
Can any of the company-specific risk be diversified away by investing in both First Industrial 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 First Industrial and Grocery Outlet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Industrial Realty and Grocery Outlet Holding, you can compare the effects of market volatilities on First Industrial 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 First Industrial with a short position of Grocery Outlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Industrial and Grocery Outlet.
Diversification Opportunities for First Industrial and Grocery Outlet
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Grocery is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding First Industrial Realty 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 First Industrial 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 First Industrial Realty 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 First Industrial i.e., First Industrial and Grocery Outlet go up and down completely randomly.
Pair Corralation between First Industrial and Grocery Outlet
Allowing for the 90-day total investment horizon First Industrial Realty is expected to generate 0.4 times more return on investment than Grocery Outlet. However, First Industrial Realty is 2.53 times less risky than Grocery Outlet. It trades about 0.21 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 5,157 in First Industrial Realty on September 5, 2025 and sell it today you would earn a total of 520.00 from holding First Industrial Realty or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Industrial Realty vs. Grocery Outlet Holding
Performance |
| Timeline |
| First Industrial Realty |
| Grocery Outlet Holding |
First Industrial and Grocery Outlet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Industrial and Grocery Outlet
The main advantage of trading using opposite First Industrial and Grocery Outlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Industrial 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.| First Industrial vs. Universal Insurance Holdings | First Industrial vs. Spirent Communications plc | First Industrial vs. ISPAF | First Industrial vs. Life Insurance |
| Grocery Outlet vs. Education Management Corp | Grocery Outlet vs. Paiute Oil Mining | Grocery Outlet vs. Avidus Management Group | Grocery Outlet vs. Waste Management |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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