Correlation Between Benchmark Botanics and Entourage Health
Can any of the company-specific risk be diversified away by investing in both Benchmark Botanics and Entourage 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 Entourage 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 Entourage Health Corp, you can compare the effects of market volatilities on Benchmark Botanics and Entourage 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 Entourage Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Botanics and Entourage Health.
Diversification Opportunities for Benchmark Botanics and Entourage Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benchmark and Entourage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Botanics and Entourage Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entourage 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 Entourage Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entourage Health Corp has no effect on the direction of Benchmark Botanics i.e., Benchmark Botanics and Entourage Health go up and down completely randomly.
Pair Corralation between Benchmark Botanics and Entourage Health
Assuming the 90 days horizon Benchmark Botanics is expected to generate 1.93 times more return on investment than Entourage Health. However, Benchmark Botanics is 1.93 times more volatile than Entourage Health Corp. It trades about 0.04 of its potential returns per unit of risk. Entourage Health Corp is currently generating about 0.05 per unit of risk. If you would invest 1.00 in Benchmark Botanics on August 31, 2024 and sell it today you would lose (0.66) from holding Benchmark Botanics or give up 66.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Botanics vs. Entourage Health Corp
Performance |
| Timeline |
| Benchmark Botanics |
| Entourage Health Corp |
Benchmark Botanics and Entourage Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Botanics and Entourage Health
The main advantage of trading using opposite Benchmark Botanics and Entourage Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Botanics position performs unexpectedly, Entourage 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 Entourage Health will offset losses from the drop in Entourage Health's long position.| Benchmark Botanics vs. Speakeasy Cannabis Club | Benchmark Botanics vs. City View Green | Benchmark Botanics vs. BC Craft Supply | Benchmark Botanics vs. Ravenquest Biomed |
| Entourage Health vs. Benchmark Botanics | Entourage Health vs. Speakeasy Cannabis Club | Entourage Health vs. City View Green | Entourage Health vs. BC Craft Supply |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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