Correlation Between Where Food and GuestLogix

Can any of the company-specific risk be diversified away by investing in both Where Food and GuestLogix 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 GuestLogix 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 GuestLogix, you can compare the effects of market volatilities on Where Food and GuestLogix 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 GuestLogix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Where Food and GuestLogix.

Diversification Opportunities for Where Food and GuestLogix

0.0

Correlation Coefficient

Where Food  GuestLogix

Pay attention - limited upside

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

Pair Corralation between Where Food and GuestLogix

If you would invest  1,199  in Where Food Comes on October 11, 2024 and sell it today you would earn a total of  55.00  from holding Where Food Comes or generate 4.59% return on investment over 90 days.

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

Where Food Comes  vs.  GuestLogix

Where Food Comes

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Where Food reported solid returns over the last few months and may actually be approaching a breakup point.

GuestLogix

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Where Food and GuestLogix

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

The idea behind Where Food Comes and GuestLogix 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.