Correlation Between Body and YourWay Cannabis
Can any of the company-specific risk be diversified away by investing in both Body and YourWay Cannabis 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 YourWay Cannabis 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 YourWay Cannabis Brands, you can compare the effects of market volatilities on Body and YourWay Cannabis 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 YourWay Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Body and YourWay Cannabis.
Diversification Opportunities for Body and YourWay Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Body and YourWay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Body and Mind and YourWay Cannabis Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YourWay Cannabis Brands 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 YourWay Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YourWay Cannabis Brands has no effect on the direction of Body i.e., Body and YourWay Cannabis go up and down completely randomly.
Pair Corralation between Body and YourWay Cannabis
Given the investment horizon of 90 days Body is expected to generate 6.23 times less return on investment than YourWay Cannabis. But when comparing it to its historical volatility, Body and Mind is 4.4 times less risky than YourWay Cannabis. It trades about 0.04 of its potential returns per unit of risk. YourWay Cannabis Brands is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.01 in YourWay Cannabis Brands on November 9, 2024 and sell it today you would lose (0.01) from holding YourWay Cannabis Brands or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Body and Mind vs. YourWay Cannabis Brands
Performance |
| Timeline |
| Body and Mind |
| YourWay Cannabis Brands |
Body and YourWay Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Body and YourWay Cannabis
The main advantage of trading using opposite Body and YourWay Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Body position performs unexpectedly, YourWay Cannabis 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 YourWay Cannabis will offset losses from the drop in YourWay Cannabis' long position.| Body vs. Goodness Growth Holdings | Body vs. 4Front Ventures Corp | Body vs. Rubicon Organics | Body vs. CLS Holdings USA |
| YourWay Cannabis vs. Decibel Cannabis | YourWay Cannabis vs. Delta 9 Cannabis | YourWay Cannabis vs. Body and Mind | YourWay Cannabis vs. CLS Holdings USA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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