Correlation Between Good Times and Energy Focu
Can any of the company-specific risk be diversified away by investing in both Good Times and Energy Focu 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 Good Times and Energy Focu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Good Times Restaurants and Energy Focu, you can compare the effects of market volatilities on Good Times and Energy Focu 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 Good Times with a short position of Energy Focu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Times and Energy Focu.
Diversification Opportunities for Good Times and Energy Focu
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Good and Energy is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Good Times Restaurants and Energy Focu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Focu and Good Times 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 Good Times Restaurants are associated (or correlated) with Energy Focu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Focu has no effect on the direction of Good Times i.e., Good Times and Energy Focu go up and down completely randomly.
Pair Corralation between Good Times and Energy Focu
Given the investment horizon of 90 days Good Times Restaurants is expected to under-perform the Energy Focu. But the stock apears to be less risky and, when comparing its historical volatility, Good Times Restaurants is 1.1 times less risky than Energy Focu. The stock trades about -0.1 of its potential returns per unit of risk. The Energy Focu is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 256.00 in Energy Focu on August 27, 2025 and sell it today you would lose (21.00) from holding Energy Focu or give up 8.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Good Times Restaurants vs. Energy Focu
Performance |
| Timeline |
| Good Times Restaurants |
| Energy Focu |
Good Times and Energy Focu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Good Times and Energy Focu
The main advantage of trading using opposite Good Times and Energy Focu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Good Times position performs unexpectedly, Energy Focu 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 Energy Focu will offset losses from the drop in Energy Focu's long position.| Good Times vs. HF Sinclair Corp | Good Times vs. Air Lease | Good Times vs. Evs Broadcast Equipment | Good Times vs. Delta Air Lines |
| Energy Focu vs. RadView Software | Energy Focu vs. Champion Iron Limited | Energy Focu vs. Robix Environmental Technologies | Energy Focu vs. Degama Software Solutions |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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