Correlation Between NetApp and Good Times
Can any of the company-specific risk be diversified away by investing in both NetApp and Good Times 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 NetApp and Good Times into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NetApp Inc and Good Times Restaurants, you can compare the effects of market volatilities on NetApp and Good Times 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 NetApp with a short position of Good Times. Check out your portfolio center. Please also check ongoing floating volatility patterns of NetApp and Good Times.
Diversification Opportunities for NetApp and Good Times
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NetApp and Good is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding NetApp Inc and Good Times Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Good Times Restaurants and NetApp 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 NetApp Inc are associated (or correlated) with Good Times. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Good Times Restaurants has no effect on the direction of NetApp i.e., NetApp and Good Times go up and down completely randomly.
Pair Corralation between NetApp and Good Times
Given the investment horizon of 90 days NetApp Inc is expected to generate 0.41 times more return on investment than Good Times. However, NetApp Inc is 2.44 times less risky than Good Times. It trades about -0.01 of its potential returns per unit of risk. Good Times Restaurants is currently generating about -0.06 per unit of risk. If you would invest 11,487 in NetApp Inc on September 2, 2025 and sell it today you would lose (260.00) from holding NetApp Inc or give up 2.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NetApp Inc vs. Good Times Restaurants
Performance |
| Timeline |
| NetApp Inc |
| Good Times Restaurants |
NetApp and Good Times Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NetApp and Good Times
The main advantage of trading using opposite NetApp and Good Times positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetApp position performs unexpectedly, Good Times 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 Good Times will offset losses from the drop in Good Times' long position.| NetApp vs. Good Times Restaurants | NetApp vs. Eddy Smart Home | NetApp vs. Baristas Coffee | NetApp vs. Westrock Coffee |
| Good Times vs. Australian Agricultural | Good Times vs. Golden Energy Offshore | Good Times vs. Future Farm Technologies | Good Times vs. WT Offshore |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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