Correlation Between Goodfood Market and Primaris Retail
Can any of the company-specific risk be diversified away by investing in both Goodfood Market and Primaris Retail 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 Primaris Retail 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 Primaris Retail RE, you can compare the effects of market volatilities on Goodfood Market and Primaris Retail 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 Primaris Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodfood Market and Primaris Retail.
Diversification Opportunities for Goodfood Market and Primaris Retail
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Goodfood and Primaris is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Goodfood Market Corp and Primaris Retail RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primaris Retail RE 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 Primaris Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primaris Retail RE has no effect on the direction of Goodfood Market i.e., Goodfood Market and Primaris Retail go up and down completely randomly.
Pair Corralation between Goodfood Market and Primaris Retail
Assuming the 90 days trading horizon Goodfood Market Corp is expected to generate 9.63 times more return on investment than Primaris Retail. However, Goodfood Market is 9.63 times more volatile than Primaris Retail RE. It trades about 0.07 of its potential returns per unit of risk. Primaris Retail RE is currently generating about 0.15 per unit of risk. If you would invest 38.00 in Goodfood Market Corp on September 14, 2024 and sell it today you would earn a total of 2.00 from holding Goodfood Market Corp or generate 5.26% 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. Primaris Retail RE
Performance |
| Timeline |
| Goodfood Market Corp |
| Primaris Retail RE |
Goodfood Market and Primaris Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodfood Market and Primaris Retail
The main advantage of trading using opposite Goodfood Market and Primaris Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodfood Market position performs unexpectedly, Primaris Retail 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 Primaris Retail will offset losses from the drop in Primaris Retail'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 |
| Primaris Retail vs. Slate Office REIT | Primaris Retail vs. Automotive Properties Real | Primaris Retail vs. BTB Real Estate | Primaris Retail vs. iShares Canadian HYBrid |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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