Correlation Between Goodfood Market and NVIDIACDR
Can any of the company-specific risk be diversified away by investing in both Goodfood Market and NVIDIACDR 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 NVIDIACDR 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 NVIDIA CDR, you can compare the effects of market volatilities on Goodfood Market and NVIDIACDR 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 NVIDIACDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodfood Market and NVIDIACDR.
Diversification Opportunities for Goodfood Market and NVIDIACDR
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Goodfood and NVIDIACDR is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Goodfood Market Corp and NVIDIA CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NVIDIA CDR 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 NVIDIACDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NVIDIA CDR has no effect on the direction of Goodfood Market i.e., Goodfood Market and NVIDIACDR go up and down completely randomly.
Pair Corralation between Goodfood Market and NVIDIACDR
Assuming the 90 days trading horizon Goodfood Market Corp is expected to under-perform the NVIDIACDR. But the stock apears to be less risky and, when comparing its historical volatility, Goodfood Market Corp is 1.57 times less risky than NVIDIACDR. The stock trades about -0.38 of its potential returns per unit of risk. The NVIDIA CDR is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,764 in NVIDIA CDR on November 27, 2024 and sell it today you would earn a total of 265.00 from holding NVIDIA CDR or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodfood Market Corp vs. NVIDIA CDR
Performance |
| Timeline |
| Goodfood Market Corp |
| NVIDIA CDR |
Goodfood Market and NVIDIACDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodfood Market and NVIDIACDR
The main advantage of trading using opposite Goodfood Market and NVIDIACDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodfood Market position performs unexpectedly, NVIDIACDR 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 NVIDIACDR will offset losses from the drop in NVIDIACDR's long position.| Goodfood Market vs. WELL Health Technologies | Goodfood Market vs. Lightspeed Commerce | Goodfood Market vs. Docebo Inc | Goodfood Market vs. Dye Durham |
| NVIDIACDR vs. TUT Fitness Group | NVIDIACDR vs. Calian Technologies | NVIDIACDR vs. Northstar Clean Technologies | NVIDIACDR vs. WELL Health Technologies |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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