Correlation Between Glacier Media and Goodfellow

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

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

Diversification Opportunities for Glacier Media and Goodfellow

0.26

Correlation Coefficient

Glacier Media  Goodfellow

Modest diversification

The 3 months correlation between Glacier and Goodfellow is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Glacier Media and Goodfellow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodfellow and Glacier Media 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 Glacier Media are associated (or correlated) with Goodfellow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodfellow has no effect on the direction of Glacier Media i.e., Glacier Media and Goodfellow go up and down completely randomly.

Pair Corralation between Glacier Media and Goodfellow

Assuming the 90 days trading horizon Glacier Media is expected to under-perform the Goodfellow. In addition to that, Glacier Media is 2.99 times more volatile than Goodfellow. It trades about -0.07 of its total potential returns per unit of risk. Goodfellow is currently generating about -0.07 per unit of volatility. If you would invest  1,283  in Goodfellow on December 24, 2024 and sell it today you would lose (106.00) from holding Goodfellow or give up 8.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Glacier Media  vs.  Goodfellow

Glacier Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Glacier Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Goodfellow

Risk-Adjusted Performance

Very Weak

Over the last 90 days Goodfellow has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Glacier Media and Goodfellow

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

The idea behind Glacier Media and Goodfellow 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.