Correlation Between Regis Common and Goodfood Market

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

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

Diversification Opportunities for Regis Common and Goodfood Market

0.77

Correlation Coefficient

Regis Common  Goodfood Market

Poor diversification

The 3 months correlation between Regis and Goodfood is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Regis Common 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 Regis Common 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 Regis Common 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 Regis Common i.e., Regis Common and Goodfood Market go up and down completely randomly.

Pair Corralation between Regis Common and Goodfood Market

Considering the 90-day investment horizon Regis Common is expected to under-perform the Goodfood Market. In addition to that, Regis Common is 1.02 times more volatile than Goodfood Market Corp. It trades about -0.09 of its total potential returns per unit of risk. Goodfood Market Corp is currently generating about -0.05 per unit of volatility. If you would invest  28.00  in Goodfood Market Corp on December 29, 2024 and sell it today you would lose (5.00) from holding Goodfood Market Corp or give up 17.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.31%
Values	Daily Returns

Regis Common  vs.  Goodfood Market Corp

Regis Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regis Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Goodfood Market Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Goodfood Market Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Regis Common and Goodfood Market

The main advantage of trading using opposite Regis Common and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Common 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 Regis Common 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.