Correlation Between Ascend Wellness and Jushi Holdings
Can any of the company-specific risk be diversified away by investing in both Ascend Wellness and Jushi Holdings 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 Ascend Wellness and Jushi Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascend Wellness Holdings and Jushi Holdings, you can compare the effects of market volatilities on Ascend Wellness and Jushi Holdings 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 Ascend Wellness with a short position of Jushi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascend Wellness and Jushi Holdings.
Diversification Opportunities for Ascend Wellness and Jushi Holdings
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ascend and Jushi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ascend Wellness Holdings and Jushi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jushi Holdings and Ascend Wellness 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 Ascend Wellness Holdings are associated (or correlated) with Jushi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jushi Holdings has no effect on the direction of Ascend Wellness i.e., Ascend Wellness and Jushi Holdings go up and down completely randomly.
Pair Corralation between Ascend Wellness and Jushi Holdings
Given the investment horizon of 90 days Ascend Wellness Holdings is expected to under-perform the Jushi Holdings. But the otc stock apears to be less risky and, when comparing its historical volatility, Ascend Wellness Holdings is 1.66 times less risky than Jushi Holdings. The otc stock trades about -0.45 of its potential returns per unit of risk. The Jushi Holdings is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 48.00 in Jushi Holdings on August 31, 2024 and sell it today you would lose (13.00) from holding Jushi Holdings or give up 27.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ascend Wellness Holdings vs. Jushi Holdings
Performance |
| Timeline |
| Ascend Wellness Holdings |
| Jushi Holdings |
Ascend Wellness and Jushi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascend Wellness and Jushi Holdings
The main advantage of trading using opposite Ascend Wellness and Jushi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascend Wellness position performs unexpectedly, Jushi Holdings 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 Jushi Holdings will offset losses from the drop in Jushi Holdings' long position.| Ascend Wellness vs. Verano Holdings Corp | Ascend Wellness vs. Green Thumb Industries | Ascend Wellness vs. AYR Strategies Class | Ascend Wellness vs. Trulieve Cannabis Corp |
| Jushi Holdings vs. Holloman Energy Corp | Jushi Holdings vs. cbdMD Inc | Jushi Holdings vs. Evolus Inc | Jushi Holdings vs. CV Sciences |
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 CEOs Directory module to screen CEOs from public companies around the world.
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