Correlation Between HR Block and Goodfood Market
Can any of the company-specific risk be diversified away by investing in both HR Block and Goodfood Market 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 HR Block and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HR Block and Goodfood Market Corp, you can compare the effects of market volatilities on HR Block and Goodfood Market 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 HR Block with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of HR Block and Goodfood Market.
Diversification Opportunities for HR Block and Goodfood Market
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HRB and Goodfood is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding HR Block and Goodfood Market Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodfood Market Corp and HR Block 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 HR Block are associated (or correlated) with Goodfood Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodfood Market Corp has no effect on the direction of HR Block i.e., HR Block and Goodfood Market go up and down completely randomly.
Pair Corralation between HR Block and Goodfood Market
Considering the 90-day investment horizon HR Block is expected to generate 1.07 times less return on investment than Goodfood Market. But when comparing it to its historical volatility, HR Block is 2.13 times less risky than Goodfood Market. It trades about 0.09 of its potential returns per unit of risk. Goodfood Market Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Goodfood Market Corp on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Goodfood Market Corp or generate 30.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
HR Block vs. Goodfood Market Corp
Performance |
| Timeline |
| HR Block |
| Goodfood Market Corp |
HR Block and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HR Block and Goodfood Market
The main advantage of trading using opposite HR Block and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HR Block position performs unexpectedly, Goodfood Market 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 Goodfood Market will offset losses from the drop in Goodfood Market's long position.| HR Block vs. Bright Horizons Family | HR Block vs. Service International | HR Block vs. Carriage Services | HR Block vs. Mister Car Wash |
| Goodfood Market vs. Frontdoor | Goodfood Market vs. Regis Common | Goodfood Market vs. XWELL Inc | Goodfood Market vs. GD Entertainment Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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