Correlation Between Goodfood Market and Canadian General
Can any of the company-specific risk be diversified away by investing in both Goodfood Market and Canadian General 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 Canadian General 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 Canadian General Investments, you can compare the effects of market volatilities on Goodfood Market and Canadian General 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 Canadian General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodfood Market and Canadian General.
Diversification Opportunities for Goodfood Market and Canadian General
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goodfood and Canadian is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Goodfood Market Corp and Canadian General Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian General Inv 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 Canadian General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian General Inv has no effect on the direction of Goodfood Market i.e., Goodfood Market and Canadian General go up and down completely randomly.
Pair Corralation between Goodfood Market and Canadian General
Assuming the 90 days trading horizon Goodfood Market Corp is expected to generate 6.81 times more return on investment than Canadian General. However, Goodfood Market is 6.81 times more volatile than Canadian General Investments. It trades about 0.34 of its potential returns per unit of risk. Canadian General Investments is currently generating about 0.11 per unit of risk. If you would invest 29.00 in Goodfood Market Corp on August 29, 2024 and sell it today you would earn a total of 16.00 from holding Goodfood Market Corp or generate 55.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodfood Market Corp vs. Canadian General Investments
Performance |
| Timeline |
| Goodfood Market Corp |
| Canadian General Inv |
Goodfood Market and Canadian General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodfood Market and Canadian General
The main advantage of trading using opposite Goodfood Market and Canadian General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodfood Market position performs unexpectedly, Canadian General 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 Canadian General will offset losses from the drop in Canadian General's long position.| Goodfood Market vs. Eros Resources Corp | Goodfood Market vs. Apple Inc CDR | Goodfood Market vs. European Residential Real | Goodfood Market vs. Canadian Utilities Ltd |
| Canadian General vs. Uniteds Limited | Canadian General vs. Economic Investment Trust | Canadian General vs. abrdn Asia Pacific | Canadian General vs. Clairvest Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |