Correlation Between Where Food and GA EXpress

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

By analyzing existing cross correlation between Where Food Comes and GA eXpress, you can compare the effects of market volatilities on Where Food and GA EXpress 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 Where Food with a short position of GA EXpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Where Food and GA EXpress.

Diversification Opportunities for Where Food and GA EXpress

0.0

Correlation Coefficient

Where Food  GA EXpress

Pay attention - limited upside

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

Pair Corralation between Where Food and GA EXpress

If you would invest  0.00  in GA eXpress on December 17, 2024 and sell it today you would earn a total of  0.00  from holding GA eXpress or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Where Food Comes  vs.  GA eXpress

Where Food Comes

Risk-Adjusted Performance

Very Weak

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

GA eXpress

Risk-Adjusted Performance

Very Weak

Over the last 90 days GA eXpress has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, GA EXpress is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Where Food and GA EXpress

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

The idea behind Where Food Comes and GA eXpress 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..