Correlation Between Benchmark Botanics and Emergent Health
Can any of the company-specific risk be diversified away by investing in both Benchmark Botanics and Emergent Health 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 Emergent Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Botanics and Emergent Health Corp, you can compare the effects of market volatilities on Benchmark Botanics and Emergent Health 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 Emergent Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Botanics and Emergent Health.
Diversification Opportunities for Benchmark Botanics and Emergent Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benchmark and Emergent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Botanics and Emergent Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emergent Health Corp 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 Emergent Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emergent Health Corp has no effect on the direction of Benchmark Botanics i.e., Benchmark Botanics and Emergent Health go up and down completely randomly.
Pair Corralation between Benchmark Botanics and Emergent Health
If you would invest 0.34 in Benchmark Botanics on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Benchmark Botanics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Botanics vs. Emergent Health Corp
Performance |
| Timeline |
| Benchmark Botanics |
| Emergent Health Corp |
Benchmark Botanics and Emergent Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Botanics and Emergent Health
The main advantage of trading using opposite Benchmark Botanics and Emergent Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Botanics position performs unexpectedly, Emergent Health 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 Emergent Health will offset losses from the drop in Emergent Health's long position.| Benchmark Botanics vs. Green Cures Botanical | Benchmark Botanics vs. Galexxy Holdings | Benchmark Botanics vs. Indoor Harvest Corp | Benchmark Botanics vs. Speakeasy Cannabis Club |
| Emergent Health vs. Galexxy Holdings | Emergent Health vs. Integrated Cannabis Solutions | Emergent Health vs. Golden Developing Solutions | Emergent Health vs. Premier Biomedical |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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