Correlation Between Goodfood Market and GD Entertainment
Can any of the company-specific risk be diversified away by investing in both Goodfood Market and GD Entertainment 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 GD Entertainment 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 GD Entertainment Technology, you can compare the effects of market volatilities on Goodfood Market and GD Entertainment 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 GD Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodfood Market and GD Entertainment.
Diversification Opportunities for Goodfood Market and GD Entertainment
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Goodfood and GDET is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Goodfood Market Corp and GD Entertainment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GD Entertainment Tec 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 GD Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GD Entertainment Tec has no effect on the direction of Goodfood Market i.e., Goodfood Market and GD Entertainment go up and down completely randomly.
Pair Corralation between Goodfood Market and GD Entertainment
If you would invest 20.00 in Goodfood Market Corp on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Goodfood Market Corp or generate 65.0% 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. GD Entertainment Technology
Performance |
| Timeline |
| Goodfood Market Corp |
| GD Entertainment Tec |
Goodfood Market and GD Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodfood Market and GD Entertainment
The main advantage of trading using opposite Goodfood Market and GD Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodfood Market position performs unexpectedly, GD Entertainment 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 GD Entertainment will offset losses from the drop in GD Entertainment's long position.| Goodfood Market vs. FitLife Brands, Common | Goodfood Market vs. HUMANA INC | Goodfood Market vs. SCOR PK | Goodfood Market vs. Aquagold International |
| GD Entertainment vs. Chester Mining | GD Entertainment vs. Park Hotels Resorts | GD Entertainment vs. BJs Restaurants | GD Entertainment vs. Oasis Hotel Resort |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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