Correlation Between Good Vibrations and Dr Martens

Can any of the company-specific risk be diversified away by investing in both Good Vibrations and Dr Martens 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 Vibrations and Dr Martens into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Good Vibrations Shoes and Dr Martens plc, you can compare the effects of market volatilities on Good Vibrations and Dr Martens 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 Vibrations with a short position of Dr Martens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Vibrations and Dr Martens.

Diversification Opportunities for Good Vibrations and Dr Martens

-0.68

Correlation Coefficient

Good Vibrations  Dr Martens

Excellent diversification

The 3 months correlation between Good and DOCMF is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Good Vibrations Shoes and Dr Martens plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dr Martens plc and Good Vibrations 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 Vibrations Shoes are associated (or correlated) with Dr Martens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dr Martens plc has no effect on the direction of Good Vibrations i.e., Good Vibrations and Dr Martens go up and down completely randomly.

Pair Corralation between Good Vibrations and Dr Martens

Given the investment horizon of 90 days Good Vibrations Shoes is expected to under-perform the Dr Martens. In addition to that, Good Vibrations is 2.21 times more volatile than Dr Martens plc. It trades about -0.12 of its total potential returns per unit of risk. Dr Martens plc is currently generating about 0.13 per unit of volatility. If you would invest  78.00  in Dr Martens plc on May 17, 2025 and sell it today you would earn a total of  24.00  from holding Dr Martens plc or generate 30.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Good Vibrations Shoes  vs.  Dr Martens plc

Good Vibrations Shoes

Risk-Adjusted Performance

Weakest

Over the last 90 days Good Vibrations Shoes has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Dr Martens plc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Dr Martens plc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak primary indicators, Dr Martens reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Good Vibrations and Dr Martens

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

The idea behind Good Vibrations Shoes and Dr Martens plc 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.