Correlation Between CLS Holdings and Benchmark Botanics
Can any of the company-specific risk be diversified away by investing in both CLS Holdings and Benchmark Botanics 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 CLS Holdings and Benchmark Botanics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CLS Holdings USA and Benchmark Botanics, you can compare the effects of market volatilities on CLS Holdings and Benchmark Botanics 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 CLS Holdings with a short position of Benchmark Botanics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CLS Holdings and Benchmark Botanics.
Diversification Opportunities for CLS Holdings and Benchmark Botanics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CLS and Benchmark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CLS Holdings USA and Benchmark Botanics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Botanics and CLS 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 CLS Holdings USA are associated (or correlated) with Benchmark Botanics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Botanics has no effect on the direction of CLS Holdings i.e., CLS Holdings and Benchmark Botanics go up and down completely randomly.
Pair Corralation between CLS Holdings and Benchmark Botanics
If you would invest 4.41 in CLS Holdings USA on August 29, 2024 and sell it today you would earn a total of 0.59 from holding CLS Holdings USA or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
CLS Holdings USA vs. Benchmark Botanics
Performance |
| Timeline |
| CLS Holdings USA |
| Benchmark Botanics |
CLS Holdings and Benchmark Botanics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CLS Holdings and Benchmark Botanics
The main advantage of trading using opposite CLS Holdings and Benchmark Botanics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CLS Holdings position performs unexpectedly, Benchmark Botanics 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 Benchmark Botanics will offset losses from the drop in Benchmark Botanics' long position.| CLS Holdings vs. Benchmark Botanics | CLS Holdings vs. Speakeasy Cannabis Club | CLS Holdings vs. City View Green | CLS Holdings vs. BC Craft Supply |
| Benchmark Botanics vs. Green Cures Botanical | Benchmark Botanics vs. Cann American Corp | Benchmark Botanics vs. Rimrock Gold Corp | Benchmark Botanics vs. Galexxy 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |