Correlation Between Goodfood Market and Interactive Strength
Can any of the company-specific risk be diversified away by investing in both Goodfood Market and Interactive Strength 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 Interactive Strength 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 Interactive Strength Common, you can compare the effects of market volatilities on Goodfood Market and Interactive Strength 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 Interactive Strength. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodfood Market and Interactive Strength.
Diversification Opportunities for Goodfood Market and Interactive Strength
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goodfood and Interactive is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Goodfood Market Corp and Interactive Strength Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Strength 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 Interactive Strength. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Strength has no effect on the direction of Goodfood Market i.e., Goodfood Market and Interactive Strength go up and down completely randomly.
Pair Corralation between Goodfood Market and Interactive Strength
Assuming the 90 days horizon Goodfood Market Corp is expected to generate 0.51 times more return on investment than Interactive Strength. However, Goodfood Market Corp is 1.95 times less risky than Interactive Strength. It trades about 0.28 of its potential returns per unit of risk. Interactive Strength Common is currently generating about -0.28 per unit of risk. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodfood Market Corp vs. Interactive Strength Common
Performance |
| Timeline |
| Goodfood Market Corp |
| Interactive Strength |
Goodfood Market and Interactive Strength Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodfood Market and Interactive Strength
The main advantage of trading using opposite Goodfood Market and Interactive Strength positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodfood Market position performs unexpectedly, Interactive Strength 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 Interactive Strength will offset losses from the drop in Interactive Strength's long position.| Goodfood Market vs. FitLife Brands, Common | Goodfood Market vs. HUMANA INC | Goodfood Market vs. SCOR PK | Goodfood Market vs. Aquagold International |
| Interactive Strength vs. Ispire Technology Common | Interactive Strength vs. Anheuser Busch Inbev | Interactive Strength vs. Philip Morris International | Interactive Strength vs. WiMi Hologram Cloud |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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