Correlation Between Columbia Care and Trulieve Cannabis
Can any of the company-specific risk be diversified away by investing in both Columbia Care and Trulieve 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 Columbia Care and Trulieve Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Care and Trulieve Cannabis Corp, you can compare the effects of market volatilities on Columbia Care and Trulieve 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 Columbia Care with a short position of Trulieve Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Care and Trulieve Cannabis.
Diversification Opportunities for Columbia Care and Trulieve Cannabis
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Columbia and Trulieve is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Care and Trulieve Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trulieve Cannabis Corp 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 Trulieve Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trulieve Cannabis Corp has no effect on the direction of Columbia Care i.e., Columbia Care and Trulieve Cannabis go up and down completely randomly.
Pair Corralation between Columbia Care and Trulieve Cannabis
If you would invest 46.00 in Columbia Care on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Columbia Care or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Columbia Care vs. Trulieve Cannabis Corp
Performance |
| Timeline |
| Columbia Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Trulieve Cannabis Corp |
Columbia Care and Trulieve Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Care and Trulieve Cannabis
The main advantage of trading using opposite Columbia Care and Trulieve Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Care position performs unexpectedly, Trulieve 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 Trulieve Cannabis will offset losses from the drop in Trulieve Cannabis' 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 |
| Trulieve Cannabis vs. Rezolute | Trulieve Cannabis vs. Tempest Therapeutics | Trulieve Cannabis vs. Forte Biosciences | Trulieve Cannabis vs. Dyadic International |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |