Correlation Between Body and Lotus Ventures
Can any of the company-specific risk be diversified away by investing in both Body and Lotus Ventures 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 Lotus Ventures 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 Lotus Ventures, you can compare the effects of market volatilities on Body and Lotus Ventures 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 Lotus Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Body and Lotus Ventures.
Diversification Opportunities for Body and Lotus Ventures
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Body and Lotus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Body and Mind and Lotus Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lotus Ventures 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 Lotus Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lotus Ventures has no effect on the direction of Body i.e., Body and Lotus Ventures go up and down completely randomly.
Pair Corralation between Body and Lotus Ventures
Given the investment horizon of 90 days Body and Mind is expected to under-perform the Lotus Ventures. But the pink sheet apears to be less risky and, when comparing its historical volatility, Body and Mind is 2.42 times less risky than Lotus Ventures. The pink sheet trades about 0.0 of its potential returns per unit of risk. The Lotus Ventures is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1.20 in Lotus Ventures on August 26, 2024 and sell it today you would lose (0.69) from holding Lotus Ventures or give up 57.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 73.09% |
| Values | Daily Returns |
Body and Mind vs. Lotus Ventures
Performance |
| Timeline |
| Body and Mind |
| Lotus Ventures |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Body and Lotus Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Body and Lotus Ventures
The main advantage of trading using opposite Body and Lotus Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Body position performs unexpectedly, Lotus Ventures 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 Lotus Ventures will offset losses from the drop in Lotus Ventures' long position.| Body vs. Green Cures Botanical | Body vs. Galexxy Holdings | Body vs. Indoor Harvest Corp | Body vs. Speakeasy Cannabis Club |
| Lotus Ventures vs. Benchmark Botanics | Lotus Ventures vs. Speakeasy Cannabis Club | Lotus Ventures vs. City View Green | Lotus Ventures 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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