Correlation Between Enghouse Systems and Goodfood Market
Can any of the company-specific risk be diversified away by investing in both Enghouse Systems 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 Enghouse Systems and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enghouse Systems and Goodfood Market Corp, you can compare the effects of market volatilities on Enghouse Systems 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 Enghouse Systems with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enghouse Systems and Goodfood Market.
Diversification Opportunities for Enghouse Systems and Goodfood Market
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Enghouse and Goodfood is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Enghouse Systems 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 Enghouse Systems 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 Enghouse Systems 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 Enghouse Systems i.e., Enghouse Systems and Goodfood Market go up and down completely randomly.
Pair Corralation between Enghouse Systems and Goodfood Market
Assuming the 90 days trading horizon Enghouse Systems is expected to generate 1.72 times less return on investment than Goodfood Market. But when comparing it to its historical volatility, Enghouse Systems is 2.03 times less risky than Goodfood Market. It trades about 0.01 of its potential returns per unit of risk. Goodfood Market Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 58.00 in Goodfood Market Corp on August 28, 2024 and sell it today you would lose (14.00) from holding Goodfood Market Corp or give up 24.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enghouse Systems vs. Goodfood Market Corp
Performance |
| Timeline |
| Enghouse Systems |
| Goodfood Market Corp |
Enghouse Systems and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enghouse Systems and Goodfood Market
The main advantage of trading using opposite Enghouse Systems and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enghouse Systems 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.| Enghouse Systems vs. Kinaxis | Enghouse Systems vs. Open Text Corp | Enghouse Systems vs. Descartes Systems Group | Enghouse Systems vs. Constellation Software |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |