Correlation Between Clever Leaves and BC Bud
Can any of the company-specific risk be diversified away by investing in both Clever Leaves and BC Bud 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 Clever Leaves and BC Bud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clever Leaves Holdings and The BC Bud, you can compare the effects of market volatilities on Clever Leaves and BC Bud 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 Clever Leaves with a short position of BC Bud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clever Leaves and BC Bud.
Diversification Opportunities for Clever Leaves and BC Bud
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clever and BCBCF is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Clever Leaves Holdings and The BC Bud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BC Bud and Clever Leaves 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 Clever Leaves Holdings are associated (or correlated) with BC Bud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BC Bud has no effect on the direction of Clever Leaves i.e., Clever Leaves and BC Bud go up and down completely randomly.
Pair Corralation between Clever Leaves and BC Bud
Given the investment horizon of 90 days Clever Leaves Holdings is expected to generate 26.71 times more return on investment than BC Bud. However, Clever Leaves is 26.71 times more volatile than The BC Bud. It trades about 0.21 of its potential returns per unit of risk. The BC Bud is currently generating about 0.21 per unit of risk. If you would invest 0.02 in Clever Leaves Holdings on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Clever Leaves Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Clever Leaves Holdings vs. The BC Bud
Performance |
| Timeline |
| Clever Leaves Holdings |
| BC Bud |
Clever Leaves and BC Bud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clever Leaves and BC Bud
The main advantage of trading using opposite Clever Leaves and BC Bud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clever Leaves position performs unexpectedly, BC Bud 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 BC Bud will offset losses from the drop in BC Bud's long position.| Clever Leaves vs. Flora Growth Corp | Clever Leaves vs. AgriFORCE Growing Systems | Clever Leaves vs. Greenlane Holdings |
| BC Bud vs. Amexdrug | BC Bud vs. Crescita Therapeutics | BC Bud vs. Aion Therapeutic | BC Bud vs. Alterola Biotech |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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