Correlation Between AF2 Capital and Goodfood Market

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Can any of the company-specific risk be diversified away by investing in both AF2 Capital 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 AF2 Capital and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AF2 Capital Corp and Goodfood Market Corp, you can compare the effects of market volatilities on AF2 Capital 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 AF2 Capital with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of AF2 Capital and Goodfood Market.

Diversification Opportunities for AF2 Capital and Goodfood Market

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AF2 and Goodfood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AF2 Capital Corp 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 AF2 Capital 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 AF2 Capital Corp 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 AF2 Capital i.e., AF2 Capital and Goodfood Market go up and down completely randomly.

Pair Corralation between AF2 Capital and Goodfood Market

If you would invest  24.00  in Goodfood Market Corp on September 12, 2024 and sell it today you would earn a total of  15.00  from holding Goodfood Market Corp or generate 62.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

AF2 Capital Corp  vs.  Goodfood Market Corp

 Performance 
       Timeline  
AF2 Capital Corp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AF2 Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, AF2 Capital is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Goodfood Market Corp 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Goodfood Market Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Goodfood Market displayed solid returns over the last few months and may actually be approaching a breakup point.

AF2 Capital and Goodfood Market Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AF2 Capital and Goodfood Market

The main advantage of trading using opposite AF2 Capital and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AF2 Capital 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.
The idea behind AF2 Capital Corp and Goodfood Market Corp 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.
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.

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