Correlation Between Interactive Strength and Goodfood Market

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

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

Diversification Opportunities for Interactive Strength and Goodfood Market

-0.62

Correlation Coefficient

Interactive Strength  Goodfood Market

Excellent diversification

The 3 months correlation between Interactive and Goodfood is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Strength 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 Interactive Strength 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 Interactive Strength 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 Interactive Strength i.e., Interactive Strength and Goodfood Market go up and down completely randomly.

Pair Corralation between Interactive Strength and Goodfood Market

Given the investment horizon of 90 days Interactive Strength Common is expected to under-perform the Goodfood Market. In addition to that, Interactive Strength is 2.4 times more volatile than Goodfood Market Corp. It trades about -0.23 of its total potential returns per unit of risk. Goodfood Market Corp is currently generating about 0.18 per unit of volatility. If you would invest  19.00  in Goodfood Market Corp on September 2, 2024 and sell it today you would earn a total of  15.00  from holding Goodfood Market Corp or generate 78.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Interactive Strength Common  vs.  Goodfood Market Corp

Interactive Strength

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Interactive Strength Common has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Goodfood Market Corp

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Goodfood Market Corp are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Goodfood Market reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Interactive Strength and Goodfood Market

The main advantage of trading using opposite Interactive Strength and Goodfood Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Strength 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 Interactive Strength 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.