Correlation Between Goodfood Market and National Bank
Can any of the company-specific risk be diversified away by investing in both Goodfood Market and National Bank 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 National Bank 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 National Bank of, you can compare the effects of market volatilities on Goodfood Market and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodfood Market and National Bank.
Diversification Opportunities for Goodfood Market and National Bank
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goodfood and National is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Goodfood Market Corp and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Goodfood Market i.e., Goodfood Market and National Bank go up and down completely randomly.
Pair Corralation between Goodfood Market and National Bank
Assuming the 90 days trading horizon Goodfood Market Corp is expected to generate 19.13 times more return on investment than National Bank. However, Goodfood Market is 19.13 times more volatile than National Bank of. It trades about 0.32 of its potential returns per unit of risk. National Bank of is currently generating about 0.2 per unit of risk. If you would invest 30.00 in Goodfood Market Corp on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Goodfood Market Corp or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodfood Market Corp vs. National Bank of
Performance |
| Timeline |
| Goodfood Market Corp |
| National Bank |
Goodfood Market and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodfood Market and National Bank
The main advantage of trading using opposite Goodfood Market and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodfood Market position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank'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 |
| National Bank vs. Brookfield Investments | National Bank vs. Rubicon Organics | National Bank vs. Arbor Metals Corp | National Bank vs. Goodfood Market 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |