Correlation Between Biome Grow and Green Cures
Can any of the company-specific risk be diversified away by investing in both Biome Grow and Green Cures 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 Biome Grow and Green Cures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biome Grow and Green Cures Botanical, you can compare the effects of market volatilities on Biome Grow and Green Cures 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 Biome Grow with a short position of Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biome Grow and Green Cures.
Diversification Opportunities for Biome Grow and Green Cures
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biome and Green is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Biome Grow and Green Cures Botanical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cures Botanical and Biome Grow 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 Biome Grow are associated (or correlated) with Green Cures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cures Botanical has no effect on the direction of Biome Grow i.e., Biome Grow and Green Cures go up and down completely randomly.
Pair Corralation between Biome Grow and Green Cures
Assuming the 90 days horizon Biome Grow is expected to generate 1.0 times less return on investment than Green Cures. In addition to that, Biome Grow is 1.35 times more volatile than Green Cures Botanical. It trades about 0.15 of its total potential returns per unit of risk. Green Cures Botanical is currently generating about 0.2 per unit of volatility. If you would invest 0.02 in Green Cures Botanical on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Green Cures Botanical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Biome Grow vs. Green Cures Botanical
Performance |
| Timeline |
| Biome Grow |
| Green Cures Botanical |
Biome Grow and Green Cures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biome Grow and Green Cures
The main advantage of trading using opposite Biome Grow and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biome Grow position performs unexpectedly, Green Cures 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 Green Cures will offset losses from the drop in Green Cures' long position.| Biome Grow vs. Green Cures Botanical | Biome Grow vs. Cann American Corp | Biome Grow vs. Galexxy Holdings | Biome Grow vs. Indoor Harvest Corp |
| Green Cures vs. Cann American Corp | Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest Corp | Green Cures vs. Genomma Lab Internacional |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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