Correlation Between NeXGold Mining and Goodfood Market
Can any of the company-specific risk be diversified away by investing in both NeXGold Mining 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 NeXGold Mining and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NeXGold Mining Corp and Goodfood Market Corp, you can compare the effects of market volatilities on NeXGold Mining 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 NeXGold Mining with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of NeXGold Mining and Goodfood Market.
Diversification Opportunities for NeXGold Mining and Goodfood Market
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NeXGold and Goodfood is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding NeXGold Mining Corp 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 NeXGold Mining 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 NeXGold Mining Corp 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 NeXGold Mining i.e., NeXGold Mining and Goodfood Market go up and down completely randomly.
Pair Corralation between NeXGold Mining and Goodfood Market
Assuming the 90 days trading horizon NeXGold Mining Corp is expected to under-perform the Goodfood Market. In addition to that, NeXGold Mining is 1.18 times more volatile than Goodfood Market Corp. It trades about -0.01 of its total potential returns per unit of risk. Goodfood Market Corp is currently generating about 0.0 per unit of volatility. If you would invest 58.00 in Goodfood Market Corp on September 3, 2024 and sell it today you would lose (13.00) from holding Goodfood Market Corp or give up 22.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NeXGold Mining Corp vs. Goodfood Market Corp
Performance |
| Timeline |
| NeXGold Mining Corp |
| Goodfood Market Corp |
NeXGold Mining and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NeXGold Mining and Goodfood Market
The main advantage of trading using opposite NeXGold Mining and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NeXGold Mining 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.| NeXGold Mining vs. Newmont Goldcorp Corp | NeXGold Mining vs. Agnico Eagle Mines | NeXGold Mining vs. Barrick Gold Corp | NeXGold Mining vs. Wheaton Precious Metals |
| Goodfood Market vs. High Liner Foods | Goodfood Market vs. Richelieu Hardware | Goodfood Market vs. International Zeolite Corp | Goodfood Market vs. European Residential Real |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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