Correlation Between Charlies Holdings and 22nd Century
Can any of the company-specific risk be diversified away by investing in both Charlies Holdings and 22nd Century 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 Charlies Holdings and 22nd Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charlies Holdings and 22nd Century Group, you can compare the effects of market volatilities on Charlies Holdings and 22nd Century 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 Charlies Holdings with a short position of 22nd Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charlies Holdings and 22nd Century.
Diversification Opportunities for Charlies Holdings and 22nd Century
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Charlies and 22nd is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Charlies Holdings and 22nd Century Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 22nd Century Group and Charlies Holdings 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 Charlies Holdings are associated (or correlated) with 22nd Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 22nd Century Group has no effect on the direction of Charlies Holdings i.e., Charlies Holdings and 22nd Century go up and down completely randomly.
Pair Corralation between Charlies Holdings and 22nd Century
If you would invest 11.00 in 22nd Century Group on August 28, 2024 and sell it today you would earn a total of 0.00 from holding 22nd Century Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Charlies Holdings vs. 22nd Century Group
Performance |
| Timeline |
| Charlies Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| 22nd Century Group |
Charlies Holdings and 22nd Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charlies Holdings and 22nd Century
The main advantage of trading using opposite Charlies Holdings and 22nd Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charlies Holdings position performs unexpectedly, 22nd Century 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 22nd Century will offset losses from the drop in 22nd Century's long position.| Charlies Holdings vs. Pyxus International | Charlies Holdings vs. PT Hanjaya Mandala | Charlies Holdings vs. Greenlane Holdings | Charlies Holdings vs. Japan Tobacco ADR |
| 22nd Century vs. Turning Point Brands | 22nd Century vs. Green Globe International | 22nd Century vs. Imperial Brands PLC | 22nd Century vs. Kaival Brands Innovations |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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