Correlation Between Converge Technology and Goodfood Market
Can any of the company-specific risk be diversified away by investing in both Converge Technology 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 Converge Technology and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Converge Technology Solutions and Goodfood Market Corp, you can compare the effects of market volatilities on Converge Technology 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 Converge Technology with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Converge Technology and Goodfood Market.
Diversification Opportunities for Converge Technology and Goodfood Market
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Converge and Goodfood is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Converge Technology Solutions 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 Converge Technology 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 Converge Technology Solutions 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 Converge Technology i.e., Converge Technology and Goodfood Market go up and down completely randomly.
Pair Corralation between Converge Technology and Goodfood Market
Assuming the 90 days trading horizon Converge Technology is expected to generate 3.62 times less return on investment than Goodfood Market. But when comparing it to its historical volatility, Converge Technology Solutions is 2.04 times less risky than Goodfood Market. It trades about 0.18 of its potential returns per unit of risk. Goodfood Market Corp is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Goodfood Market Corp on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Goodfood Market Corp or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Converge Technology Solutions vs. Goodfood Market Corp
Performance |
| Timeline |
| Converge Technology |
| Goodfood Market Corp |
Converge Technology and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Converge Technology and Goodfood Market
The main advantage of trading using opposite Converge Technology and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Converge Technology 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.| Converge Technology vs. Qyou Media | Converge Technology vs. Kraken Robotics | Converge Technology vs. Nexoptic Technology Corp |
| Goodfood Market vs. WELL Health Technologies | Goodfood Market vs. Lightspeed Commerce | Goodfood Market vs. iShares Canadian HYBrid | Goodfood Market vs. Altagas Cum Red |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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