Correlation Between Goodfood Market and Capstone Infrastructure
Can any of the company-specific risk be diversified away by investing in both Goodfood Market and Capstone Infrastructure 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 Capstone Infrastructure 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 Capstone Infrastructure Corp, you can compare the effects of market volatilities on Goodfood Market and Capstone Infrastructure 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 Capstone Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodfood Market and Capstone Infrastructure.
Diversification Opportunities for Goodfood Market and Capstone Infrastructure
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Goodfood and Capstone is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Goodfood Market Corp and Capstone Infrastructure Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capstone Infrastructure 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 Capstone Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capstone Infrastructure has no effect on the direction of Goodfood Market i.e., Goodfood Market and Capstone Infrastructure go up and down completely randomly.
Pair Corralation between Goodfood Market and Capstone Infrastructure
Assuming the 90 days trading horizon Goodfood Market Corp is expected to generate 10.79 times more return on investment than Capstone Infrastructure. However, Goodfood Market is 10.79 times more volatile than Capstone Infrastructure Corp. It trades about 0.21 of its potential returns per unit of risk. Capstone Infrastructure Corp is currently generating about 0.06 per unit of risk. If you would invest 35.00 in Goodfood Market Corp on September 5, 2024 and sell it today you would earn a total of 10.00 from holding Goodfood Market Corp or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodfood Market Corp vs. Capstone Infrastructure Corp
Performance |
| Timeline |
| Goodfood Market Corp |
| Capstone Infrastructure |
Goodfood Market and Capstone Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodfood Market and Capstone Infrastructure
The main advantage of trading using opposite Goodfood Market and Capstone Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodfood Market position performs unexpectedly, Capstone Infrastructure 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 Capstone Infrastructure will offset losses from the drop in Capstone Infrastructure's long position.| Goodfood Market vs. WELL Health Technologies | Goodfood Market vs. Lightspeed Commerce | Goodfood Market vs. Docebo Inc | Goodfood Market vs. Dye Durham |
| Capstone Infrastructure vs. Algonquin Power Utilities | Capstone Infrastructure vs. Goodfood Market Corp | Capstone Infrastructure vs. Brookfield Office Properties | Capstone Infrastructure vs. CVW CleanTech |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| 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 Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |