Correlation Between Grocery Outlet and Codere Online

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

Diversification Opportunities for Grocery Outlet and Codere Online

-0.13

Correlation Coefficient

Grocery Outlet  Codere Online

Good diversification

The 3 months correlation between Grocery and Codere is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Grocery Outlet Holding and Codere Online Luxembourg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Codere Online Luxembourg 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 Codere Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Codere Online Luxembourg has no effect on the direction of Grocery Outlet i.e., Grocery Outlet and Codere Online go up and down completely randomly.

Pair Corralation between Grocery Outlet and Codere Online

Allowing for the 90-day total investment horizon Grocery Outlet Holding is expected to under-perform the Codere Online. But the stock apears to be less risky and, when comparing its historical volatility, Grocery Outlet Holding is 2.39 times less risky than Codere Online. The stock trades about -0.11 of its potential returns per unit of risk. The Codere Online Luxembourg is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  78.00  in Codere Online Luxembourg on May 4, 2025 and sell it today you would earn a total of  24.00  from holding Codere Online Luxembourg or generate 30.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	74.19%
Values	Daily Returns

Grocery Outlet Holding  vs.  Codere Online Luxembourg

Grocery Outlet Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grocery Outlet Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Codere Online Luxembourg

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Codere Online Luxembourg are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Codere Online showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Grocery Outlet and Codere Online

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

The idea behind Grocery Outlet Holding and Codere Online Luxembourg 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.