Correlation Between BZAM and CannTrust Holdings
Can any of the company-specific risk be diversified away by investing in both BZAM and CannTrust Holdings 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 BZAM and CannTrust Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BZAM and CannTrust Holdings, you can compare the effects of market volatilities on BZAM and CannTrust Holdings 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 BZAM with a short position of CannTrust Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BZAM and CannTrust Holdings.
Diversification Opportunities for BZAM and CannTrust Holdings
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BZAM and CannTrust is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BZAM and CannTrust Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CannTrust Holdings and BZAM 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 BZAM are associated (or correlated) with CannTrust Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CannTrust Holdings has no effect on the direction of BZAM i.e., BZAM and CannTrust Holdings go up and down completely randomly.
Pair Corralation between BZAM and CannTrust Holdings
If you would invest 1.80 in BZAM on August 29, 2024 and sell it today you would lose (1.80) from holding BZAM or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
BZAM vs. CannTrust Holdings
Performance |
| Timeline |
| BZAM |
| CannTrust Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BZAM and CannTrust Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BZAM and CannTrust Holdings
The main advantage of trading using opposite BZAM and CannTrust Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BZAM position performs unexpectedly, CannTrust Holdings 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 CannTrust Holdings will offset losses from the drop in CannTrust Holdings' long position.| BZAM vs. Southwest Gas Holdings | BZAM vs. WEC Energy Group | BZAM vs. Topbuild Corp | BZAM vs. CenterPoint Energy |
| CannTrust Holdings vs. Acreage Holdings | CannTrust Holdings vs. BZAM | CannTrust Holdings vs. Choom Holdings | CannTrust Holdings vs. Stem 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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