Correlation Between Body and Green Cures
Can any of the company-specific risk be diversified away by investing in both Body 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 Body and Green Cures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Body and Mind and Green Cures Botanical, you can compare the effects of market volatilities on Body 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 Body with a short position of Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Body and Green Cures.
Diversification Opportunities for Body and Green Cures
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Body and Green is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Body and Mind 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 Body 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 Body and Mind 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 Body i.e., Body and Green Cures go up and down completely randomly.
Pair Corralation between Body and Green Cures
Given the investment horizon of 90 days Body is expected to generate 19.51 times less return on investment than Green Cures. But when comparing it to its historical volatility, Body and Mind is 3.32 times less risky than Green Cures. It trades about 0.03 of its potential returns per unit of risk. Green Cures Botanical is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 0.07 in Green Cures Botanical on August 30, 2024 and sell it today you would lose (0.06) from holding Green Cures Botanical or give up 85.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Body and Mind vs. Green Cures Botanical
Performance |
| Timeline |
| Body and Mind |
| Green Cures Botanical |
Body and Green Cures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Body and Green Cures
The main advantage of trading using opposite Body and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Body 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.| Body vs. Goodness Growth Holdings | Body vs. 4Front Ventures Corp | Body vs. Rubicon Organics | Body vs. CLS Holdings USA |
| Green Cures vs. Cann American Corp | Green Cures vs. Rimrock Gold Corp | Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |