Correlation Between Park Lawn and Goodfood Market
Can any of the company-specific risk be diversified away by investing in both Park Lawn 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 Park Lawn and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Park Lawn and Goodfood Market Corp, you can compare the effects of market volatilities on Park Lawn 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 Park Lawn with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Lawn and Goodfood Market.
Diversification Opportunities for Park Lawn and Goodfood Market
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Park and Goodfood is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Park Lawn 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 Park Lawn 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 Park Lawn 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 Park Lawn i.e., Park Lawn and Goodfood Market go up and down completely randomly.
Pair Corralation between Park Lawn and Goodfood Market
If you would invest 20.00 in Goodfood Market Corp on August 25, 2024 and sell it today you would earn a total of 16.00 from holding Goodfood Market Corp or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Park Lawn vs. Goodfood Market Corp
Performance |
| Timeline |
| Park Lawn |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Goodfood Market Corp |
Park Lawn and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Lawn and Goodfood Market
The main advantage of trading using opposite Park Lawn and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Lawn 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.| Park Lawn vs. XWELL Inc | Park Lawn vs. Mister Car Wash | Park Lawn vs. Interactive Strength Common | Park Lawn vs. Goodfood Market Corp |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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