Correlation Between Columbia Care and Lowell Farms
Can any of the company-specific risk be diversified away by investing in both Columbia Care and Lowell Farms 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 Columbia Care and Lowell Farms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Care and Lowell Farms, you can compare the effects of market volatilities on Columbia Care and Lowell Farms 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 Columbia Care with a short position of Lowell Farms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Care and Lowell Farms.
Diversification Opportunities for Columbia Care and Lowell Farms
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Columbia and Lowell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Care and Lowell Farms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lowell Farms and Columbia Care 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 Columbia Care are associated (or correlated) with Lowell Farms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lowell Farms has no effect on the direction of Columbia Care i.e., Columbia Care and Lowell Farms go up and down completely randomly.
Pair Corralation between Columbia Care and Lowell Farms
If you would invest 50.00 in Lowell Farms on January 16, 2025 and sell it today you would lose (48.95) from holding Lowell Farms or give up 97.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Columbia Care vs. Lowell Farms
Performance |
| Timeline |
| Columbia Care |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Lowell Farms |
Columbia Care and Lowell Farms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Care and Lowell Farms
The main advantage of trading using opposite Columbia Care and Lowell Farms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Care position performs unexpectedly, Lowell Farms 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 Lowell Farms will offset losses from the drop in Lowell Farms' long position.| Columbia Care vs. Green Thumb Industries | Columbia Care vs. AYR Strategies Class | Columbia Care vs. Trulieve Cannabis Corp | Columbia Care vs. Goodness Growth Holdings |
| Lowell Farms vs. Medicine Man Technologies | Lowell Farms vs. Ascend Wellness Holdings | Lowell Farms vs. Goodness Growth Holdings | Lowell Farms vs. AYR Strategies Class |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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