Correlation Between XWELL and Goodfood Market
Can any of the company-specific risk be diversified away by investing in both XWELL 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 XWELL and Goodfood Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XWELL Inc and Goodfood Market Corp, you can compare the effects of market volatilities on XWELL 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 XWELL with a short position of Goodfood Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of XWELL and Goodfood Market.
Diversification Opportunities for XWELL and Goodfood Market
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between XWELL and Goodfood is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding XWELL 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 XWELL 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 XWELL 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 XWELL i.e., XWELL and Goodfood Market go up and down completely randomly.
Pair Corralation between XWELL and Goodfood Market
Given the investment horizon of 90 days XWELL Inc is expected to under-perform the Goodfood Market. But the stock apears to be less risky and, when comparing its historical volatility, XWELL Inc is 3.66 times less risky than Goodfood Market. The stock trades about -0.27 of its potential returns per unit of risk. The Goodfood Market Corp is currently generating about 0.33 of returns per unit of risk over similar time horizon. 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 Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
XWELL Inc vs. Goodfood Market Corp
Performance |
| Timeline |
| XWELL Inc |
| Goodfood Market Corp |
XWELL and Goodfood Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XWELL and Goodfood Market
The main advantage of trading using opposite XWELL and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XWELL 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.| XWELL vs. Mister Car Wash | XWELL vs. Interactive Strength Common | XWELL vs. Goodfood Market Corp | XWELL vs. Frontdoor |
| Goodfood Market vs. FitLife Brands, Common | Goodfood Market vs. HUMANA INC | Goodfood Market vs. SCOR PK | Goodfood Market vs. Aquagold International |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |