Correlation Between Eddy Smart and Goodfood Market
Can any of the company-specific risk be diversified away by investing in both Eddy Smart 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 Eddy Smart and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eddy Smart Home and Goodfood Market Corp, you can compare the effects of market volatilities on Eddy Smart 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 Eddy Smart with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eddy Smart and Goodfood Market.
Diversification Opportunities for Eddy Smart and Goodfood Market
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eddy and Goodfood is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eddy Smart Home 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 Eddy Smart 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 Eddy Smart Home 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 Eddy Smart i.e., Eddy Smart and Goodfood Market go up and down completely randomly.
Pair Corralation between Eddy Smart and Goodfood Market
Assuming the 90 days horizon Eddy Smart Home is expected to under-perform the Goodfood Market. But the stock apears to be less risky and, when comparing its historical volatility, Eddy Smart Home is 1.3 times less risky than Goodfood Market. The stock trades about -0.2 of its potential returns per unit of risk. The Goodfood Market Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Goodfood Market Corp on September 13, 2024 and sell it today you would earn a total of 2.00 from holding Goodfood Market Corp or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eddy Smart Home vs. Goodfood Market Corp
Performance |
| Timeline |
| Eddy Smart Home |
| Goodfood Market Corp |
Eddy Smart and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eddy Smart and Goodfood Market
The main advantage of trading using opposite Eddy Smart and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eddy Smart 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.| Eddy Smart vs. Simply Better Brands | Eddy Smart vs. Forward Water Technologies | Eddy Smart vs. Pulse Oil Corp | Eddy Smart vs. C3 Metals |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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