Correlation Between Goodfood Market and First National
Can any of the company-specific risk be diversified away by investing in both Goodfood Market and First National 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 First National 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 First National Financial, you can compare the effects of market volatilities on Goodfood Market and First National 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 First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodfood Market and First National.
Diversification Opportunities for Goodfood Market and First National
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goodfood and First is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Goodfood Market Corp and First National Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National Financial 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 First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National Financial has no effect on the direction of Goodfood Market i.e., Goodfood Market and First National go up and down completely randomly.
Pair Corralation between Goodfood Market and First National
Assuming the 90 days trading horizon Goodfood Market is expected to generate 1.09 times less return on investment than First National. In addition to that, Goodfood Market is 3.92 times more volatile than First National Financial. It trades about 0.02 of its total potential returns per unit of risk. First National Financial is currently generating about 0.07 per unit of volatility. If you would invest 1,146 in First National Financial on September 14, 2024 and sell it today you would earn a total of 399.00 from holding First National Financial or generate 34.82% 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. First National Financial
Performance |
| Timeline |
| Goodfood Market Corp |
| First National Financial |
Goodfood Market and First National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodfood Market and First National
The main advantage of trading using opposite Goodfood Market and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodfood Market position performs unexpectedly, First National 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 First National will offset losses from the drop in First National'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 |
| First National vs. Economic Investment Trust | First National vs. Stampede Drilling | First National vs. Altair Resources | First National vs. Pembina Pipeline Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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