Correlation Between AYR Strategies and Green Thumb
Can any of the company-specific risk be diversified away by investing in both AYR Strategies and Green Thumb 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 AYR Strategies and Green Thumb into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AYR Strategies Class and Green Thumb Industries, you can compare the effects of market volatilities on AYR Strategies and Green Thumb 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 AYR Strategies with a short position of Green Thumb. Check out your portfolio center. Please also check ongoing floating volatility patterns of AYR Strategies and Green Thumb.
Diversification Opportunities for AYR Strategies and Green Thumb
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AYR and Green is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AYR Strategies Class and Green Thumb Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Thumb Industries and AYR Strategies 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 AYR Strategies Class are associated (or correlated) with Green Thumb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Thumb Industries has no effect on the direction of AYR Strategies i.e., AYR Strategies and Green Thumb go up and down completely randomly.
Pair Corralation between AYR Strategies and Green Thumb
Assuming the 90 days horizon AYR Strategies Class is expected to generate 1.99 times more return on investment than Green Thumb. However, AYR Strategies is 1.99 times more volatile than Green Thumb Industries. It trades about 0.02 of its potential returns per unit of risk. Green Thumb Industries is currently generating about 0.02 per unit of risk. If you would invest 125.00 in AYR Strategies Class on October 21, 2024 and sell it today you would lose (75.00) from holding AYR Strategies Class or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AYR Strategies Class vs. Green Thumb Industries
Performance |
| Timeline |
| AYR Strategies Class |
| Green Thumb Industries |
AYR Strategies and Green Thumb Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AYR Strategies and Green Thumb
The main advantage of trading using opposite AYR Strategies and Green Thumb positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AYR Strategies position performs unexpectedly, Green Thumb 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 Green Thumb will offset losses from the drop in Green Thumb's long position.| AYR Strategies vs. Green Thumb Industries | AYR Strategies vs. Trulieve Cannabis Corp | AYR Strategies vs. Goodness Growth Holdings | AYR Strategies vs. Verano Holdings Corp |
| Green Thumb vs. Curaleaf Holdings | Green Thumb vs. Trulieve Cannabis Corp | Green Thumb vs. Cresco Labs | Green Thumb vs. GrowGeneration Corp |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |