Correlation Between Snap and Goodfood Market
Can any of the company-specific risk be diversified away by investing in both Snap 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 Snap and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snap Inc and Goodfood Market Corp, you can compare the effects of market volatilities on Snap 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 Snap with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snap and Goodfood Market.
Diversification Opportunities for Snap and Goodfood Market
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Snap and Goodfood is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Snap Inc 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 Snap 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 Snap Inc 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 Snap i.e., Snap and Goodfood Market go up and down completely randomly.
Pair Corralation between Snap and Goodfood Market
Given the investment horizon of 90 days Snap Inc is expected to generate 1.08 times more return on investment than Goodfood Market. However, Snap is 1.08 times more volatile than Goodfood Market Corp. It trades about 0.03 of its potential returns per unit of risk. Goodfood Market Corp is currently generating about 0.01 per unit of risk. If you would invest 1,010 in Snap Inc on August 25, 2024 and sell it today you would earn a total of 132.00 from holding Snap Inc or generate 13.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Snap Inc vs. Goodfood Market Corp
Performance |
| Timeline |
| Snap Inc |
| Goodfood Market Corp |
Snap and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snap and Goodfood Market
The main advantage of trading using opposite Snap and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snap 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.The idea behind Snap Inc and Goodfood Market Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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