Correlation Between Global Hemp and Goodbody Health

Can any of the company-specific risk be diversified away by investing in both Global Hemp and Goodbody Health 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 Global Hemp and Goodbody Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global Hemp Group and Goodbody Health, you can compare the effects of market volatilities on Global Hemp and Goodbody Health 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 Global Hemp with a short position of Goodbody Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Hemp and Goodbody Health.

Diversification Opportunities for Global Hemp and Goodbody Health

0.0

Correlation Coefficient

Global Hemp  Goodbody Health

Pay attention - limited upside

The 3 months correlation between Global and Goodbody is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Hemp Group and Goodbody Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbody Health and Global Hemp 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 Global Hemp Group are associated (or correlated) with Goodbody Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbody Health has no effect on the direction of Global Hemp i.e., Global Hemp and Goodbody Health go up and down completely randomly.

Pair Corralation between Global Hemp and Goodbody Health

If you would invest  0.00  in Goodbody Health on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Goodbody Health or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Global Hemp Group  vs.  Goodbody Health

Global Hemp Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Hemp Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Goodbody Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Goodbody Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Goodbody Health is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Global Hemp and Goodbody Health

The main advantage of trading using opposite Global Hemp and Goodbody Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Hemp position performs unexpectedly, Goodbody Health 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 Goodbody Health will offset losses from the drop in Goodbody Health's long position.

The idea behind Global Hemp Group and Goodbody Health 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.