Correlation Between Apple and Goodfood Market
Can any of the company-specific risk be diversified away by investing in both Apple and Goodfood Market 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 Apple and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc CDR and Goodfood Market Corp, you can compare the effects of market volatilities on Apple and Goodfood Market 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 Apple with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Goodfood Market.
Diversification Opportunities for Apple and Goodfood Market
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apple and Goodfood is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc CDR and Goodfood Market Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodfood Market Corp and Apple 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 Apple Inc CDR are associated (or correlated) with Goodfood Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodfood Market Corp has no effect on the direction of Apple i.e., Apple and Goodfood Market go up and down completely randomly.
Pair Corralation between Apple and Goodfood Market
Assuming the 90 days trading horizon Apple Inc CDR is expected to generate 0.41 times more return on investment than Goodfood Market. However, Apple Inc CDR is 2.45 times less risky than Goodfood Market. It trades about 0.06 of its potential returns per unit of risk. Goodfood Market Corp is currently generating about -0.04 per unit of risk. If you would invest 3,439 in Apple Inc CDR on November 27, 2024 and sell it today you would earn a total of 165.00 from holding Apple Inc CDR or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc CDR vs. Goodfood Market Corp
Performance |
| Timeline |
| Apple Inc CDR |
| Goodfood Market Corp |
Apple and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Goodfood Market
The main advantage of trading using opposite Apple and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Goodfood Market 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 Goodfood Market will offset losses from the drop in Goodfood Market's long position.| Apple vs. AKITA Drilling | Apple vs. Sparx Technology | Apple vs. HOME DEPOT CDR | Apple vs. Exco Technologies Limited |
| Goodfood Market vs. WELL Health Technologies | Goodfood Market vs. Lightspeed Commerce | Goodfood Market vs. Docebo Inc | Goodfood Market vs. Dye Durham |
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 Stocks Directory module to find actively traded stocks across global markets.
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