Correlation Between Cameco Corp and Goodfood Market
Can any of the company-specific risk be diversified away by investing in both Cameco Corp 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 Cameco Corp and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cameco Corp and Goodfood Market Corp, you can compare the effects of market volatilities on Cameco Corp 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 Cameco Corp with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cameco Corp and Goodfood Market.
Diversification Opportunities for Cameco Corp and Goodfood Market
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cameco and Goodfood is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cameco 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 Cameco Corp 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 Cameco 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 Cameco Corp i.e., Cameco Corp and Goodfood Market go up and down completely randomly.
Pair Corralation between Cameco Corp and Goodfood Market
Assuming the 90 days trading horizon Cameco Corp is expected to generate 17.45 times less return on investment than Goodfood Market. But when comparing it to its historical volatility, Cameco Corp is 1.9 times less risky than Goodfood Market. It trades about 0.02 of its potential returns per unit of risk. Goodfood Market Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 44.00 in Goodfood Market Corp on October 24, 2024 and sell it today you would earn a total of 7.00 from holding Goodfood Market Corp or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Cameco Corp vs. Goodfood Market Corp
Performance |
| Timeline |
| Cameco Corp |
| Goodfood Market Corp |
Cameco Corp and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cameco Corp and Goodfood Market
The main advantage of trading using opposite Cameco Corp and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cameco Corp 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.| Cameco Corp vs. Denison Mines Corp | Cameco Corp vs. Barrick Gold Corp | Cameco Corp vs. First Quantum Minerals | Cameco Corp vs. Kinross Gold Corp |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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