Correlation Between Benchmark Botanics and Love Hemp
Can any of the company-specific risk be diversified away by investing in both Benchmark Botanics and Love Hemp 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 Love Hemp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Benchmark Botanics and Love Hemp Group, you can compare the effects of market volatilities on Benchmark Botanics and Love Hemp 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 Love Hemp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Benchmark Botanics and Love Hemp.
Diversification Opportunities for Benchmark Botanics and Love Hemp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Benchmark and Love is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Benchmark Botanics and Love Hemp Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Love Hemp Group 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 Love Hemp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Love Hemp Group has no effect on the direction of Benchmark Botanics i.e., Benchmark Botanics and Love Hemp go up and down completely randomly.
Pair Corralation between Benchmark Botanics and Love Hemp
Assuming the 90 days horizon Benchmark Botanics is expected to generate 2.39 times less return on investment than Love Hemp. But when comparing it to its historical volatility, Benchmark Botanics is 1.35 times less risky than Love Hemp. It trades about 0.04 of its potential returns per unit of risk. Love Hemp Group is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.09 in Love Hemp Group on August 30, 2024 and sell it today you would lose (0.09) from holding Love Hemp Group or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Benchmark Botanics vs. Love Hemp Group
Performance |
| Timeline |
| Benchmark Botanics |
| Love Hemp Group |
Benchmark Botanics and Love Hemp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Benchmark Botanics and Love Hemp
The main advantage of trading using opposite Benchmark Botanics and Love Hemp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Benchmark Botanics position performs unexpectedly, Love Hemp 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 Love Hemp will offset losses from the drop in Love Hemp's long position.| Benchmark Botanics vs. Green Cures Botanical | Benchmark Botanics vs. Cann American Corp | Benchmark Botanics vs. Rimrock Gold Corp | Benchmark Botanics vs. Galexxy Holdings |
| Love Hemp vs. Nunzia Pharmaceutical | Love Hemp vs. CuraScientific Corp | Love Hemp vs. Cannabis Strategic Ventures | Love Hemp vs. ManifestSeven Holdings |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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