Correlation Between GrubHub and 58

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Can any of the company-specific risk be diversified away by investing in both GrubHub and 58 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 GrubHub and 58 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GrubHub and 58 Inc, you can compare the effects of market volatilities on GrubHub and 58 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 GrubHub with a short position of 58. Check out your portfolio center. Please also check ongoing floating volatility patterns of GrubHub and 58.

Diversification Opportunities for GrubHub and 58

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between GrubHub and 58 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GrubHub and 58 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 58 Inc and GrubHub 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 GrubHub are associated (or correlated) with 58. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 58 Inc has no effect on the direction of GrubHub i.e., GrubHub and 58 go up and down completely randomly.

Pair Corralation between GrubHub and 58

If you would invest (100.00) in 58 Inc on December 29, 2023 and sell it today you would earn a total of  100.00  from holding 58 Inc or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

GrubHub  vs.  58 Inc

 Performance 
       Timeline  
GrubHub 

Risk-Adjusted Performance

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Over the last 90 days GrubHub has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, GrubHub is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
58 Inc 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days 58 Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, 58 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

GrubHub and 58 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GrubHub and 58

The main advantage of trading using opposite GrubHub and 58 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GrubHub position performs unexpectedly, 58 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 58 will offset losses from the drop in 58's long position.
The idea behind GrubHub and 58 Inc 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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