Correlation Between Benchmark Botanics and Goodbody Health
Can any of the company-specific risk be diversified away by investing in both Benchmark Botanics and Goodbody 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 Goodbody 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 Goodbody Health, you can compare the effects of market volatilities on Benchmark Botanics and Goodbody 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 Goodbody Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Botanics and Goodbody Health.
Diversification Opportunities for Benchmark Botanics and Goodbody Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benchmark and Goodbody is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Botanics and Goodbody Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbody Health 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 Goodbody Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbody Health has no effect on the direction of Benchmark Botanics i.e., Benchmark Botanics and Goodbody Health go up and down completely randomly.
Pair Corralation between Benchmark Botanics and Goodbody Health
Assuming the 90 days horizon Benchmark Botanics is expected to generate 8.1 times less return on investment than Goodbody Health. But when comparing it to its historical volatility, Benchmark Botanics is 3.26 times less risky than Goodbody Health. It trades about 0.04 of its potential returns per unit of risk. Goodbody Health is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Goodbody Health on September 12, 2024 and sell it today you would lose (2.50) from holding Goodbody Health or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Benchmark Botanics vs. Goodbody Health
Performance |
| Timeline |
| Benchmark Botanics |
| Goodbody Health |
Benchmark Botanics and Goodbody Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Botanics and Goodbody Health
The main advantage of trading using opposite Benchmark Botanics and Goodbody Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Botanics position performs unexpectedly, Goodbody 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 Goodbody Health will offset losses from the drop in Goodbody 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 |
| Goodbody Health vs. Anything Tech Media | Goodbody Health vs. Nutralife Biosciences | Goodbody Health vs. Merck KGaA ADR | Goodbody Health vs. Mc Endvrs |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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