Correlation Between Goodfood Market and Brookfield Office
Can any of the company-specific risk be diversified away by investing in both Goodfood Market and Brookfield Office 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 Goodfood Market and Brookfield Office into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodfood Market Corp and Brookfield Office Properties, you can compare the effects of market volatilities on Goodfood Market and Brookfield Office 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 Goodfood Market with a short position of Brookfield Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodfood Market and Brookfield Office.
Diversification Opportunities for Goodfood Market and Brookfield Office
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goodfood and Brookfield is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Goodfood Market Corp and Brookfield Office Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookfield Office and Goodfood Market 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 Goodfood Market Corp are associated (or correlated) with Brookfield Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookfield Office has no effect on the direction of Goodfood Market i.e., Goodfood Market and Brookfield Office go up and down completely randomly.
Pair Corralation between Goodfood Market and Brookfield Office
Assuming the 90 days trading horizon Goodfood Market Corp is expected to generate 2.27 times more return on investment than Brookfield Office. However, Goodfood Market is 2.27 times more volatile than Brookfield Office Properties. It trades about 0.02 of its potential returns per unit of risk. Brookfield Office Properties is currently generating about 0.03 per unit of risk. If you would invest 42.00 in Goodfood Market Corp on September 14, 2024 and sell it today you would lose (2.00) from holding Goodfood Market Corp or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodfood Market Corp vs. Brookfield Office Properties
Performance |
| Timeline |
| Goodfood Market Corp |
| Brookfield Office |
Goodfood Market and Brookfield Office Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodfood Market and Brookfield Office
The main advantage of trading using opposite Goodfood Market and Brookfield Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodfood Market position performs unexpectedly, Brookfield Office 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 Brookfield Office will offset losses from the drop in Brookfield Office's long position.| Goodfood Market vs. WELL Health Technologies | Goodfood Market vs. Lightspeed Commerce | Goodfood Market vs. iShares Canadian HYBrid | Goodfood Market vs. Altagas Cum Red |
| Brookfield Office vs. BluMetric Environmental | Brookfield Office vs. Champion Iron | Brookfield Office vs. Labrador Iron Ore | Brookfield Office vs. Canlan Ice Sports |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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