Correlation Between Benchmark Botanics and Acreage Holdings
Can any of the company-specific risk be diversified away by investing in both Benchmark Botanics and Acreage 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 Benchmark Botanics and Acreage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Botanics and Acreage Holdings, you can compare the effects of market volatilities on Benchmark Botanics and Acreage 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 Benchmark Botanics with a short position of Acreage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Botanics and Acreage Holdings.
Diversification Opportunities for Benchmark Botanics and Acreage Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benchmark and Acreage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Botanics and Acreage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acreage Holdings and Benchmark Botanics 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 Benchmark Botanics are associated (or correlated) with Acreage Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acreage Holdings has no effect on the direction of Benchmark Botanics i.e., Benchmark Botanics and Acreage Holdings go up and down completely randomly.
Pair Corralation between Benchmark Botanics and Acreage Holdings
If you would invest 18.00 in Acreage Holdings on August 26, 2024 and sell it today you would lose (2.00) from holding Acreage Holdings or give up 11.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Botanics vs. Acreage Holdings
Performance |
| Timeline |
| Benchmark Botanics |
| Acreage Holdings |
Benchmark Botanics and Acreage Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Botanics and Acreage Holdings
The main advantage of trading using opposite Benchmark Botanics and Acreage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Botanics position performs unexpectedly, Acreage 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 Acreage Holdings will offset losses from the drop in Acreage Holdings' long position.| Benchmark Botanics vs. Green Cures Botanical | Benchmark Botanics vs. Indoor Harvest Corp | Benchmark Botanics vs. Speakeasy Cannabis Club | Benchmark Botanics vs. Link Reservations |
| Acreage Holdings vs. Green Cures Botanical | Acreage Holdings vs. Indoor Harvest Corp | Acreage Holdings vs. Speakeasy Cannabis Club | Acreage Holdings vs. Benchmark Botanics |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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