Correlation Between Goodfood Market and HR Block
Can any of the company-specific risk be diversified away by investing in both Goodfood Market and HR Block 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 HR Block 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 HR Block, you can compare the effects of market volatilities on Goodfood Market and HR Block 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 HR Block. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodfood Market and HR Block.
Diversification Opportunities for Goodfood Market and HR Block
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Goodfood and HRB is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Goodfood Market Corp and HR Block in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HR Block 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 HR Block. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HR Block has no effect on the direction of Goodfood Market i.e., Goodfood Market and HR Block go up and down completely randomly.
Pair Corralation between Goodfood Market and HR Block
Assuming the 90 days horizon Goodfood Market Corp is expected to generate 3.49 times more return on investment than HR Block. However, Goodfood Market is 3.49 times more volatile than HR Block. It trades about 0.27 of its potential returns per unit of risk. HR Block is currently generating about 0.01 per unit of risk. If you would invest 20.00 in Goodfood Market Corp on August 29, 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodfood Market Corp vs. HR Block
Performance |
| Timeline |
| Goodfood Market Corp |
| HR Block |
Goodfood Market and HR Block Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodfood Market and HR Block
The main advantage of trading using opposite Goodfood Market and HR Block positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodfood Market position performs unexpectedly, HR Block 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 HR Block will offset losses from the drop in HR Block's long position.| Goodfood Market vs. Frontdoor | Goodfood Market vs. Regis Common | Goodfood Market vs. XWELL Inc | Goodfood Market vs. GD Entertainment Technology |
| HR Block vs. Bright Horizons Family | HR Block vs. Service International | HR Block vs. Carriage Services | HR Block vs. Mister Car Wash |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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