Correlation Between Clever Leaves and City View
Can any of the company-specific risk be diversified away by investing in both Clever Leaves and City View 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 City View 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 City View Green, you can compare the effects of market volatilities on Clever Leaves and City View 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 City View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clever Leaves and City View.
Diversification Opportunities for Clever Leaves and City View
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Clever and City is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Clever Leaves Holdings and City View Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City View Green 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 City View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City View Green has no effect on the direction of Clever Leaves i.e., Clever Leaves and City View go up and down completely randomly.
Pair Corralation between Clever Leaves and City View
If you would invest 0.05 in Clever Leaves Holdings on November 27, 2024 and sell it today you would earn a total of 0.07 from holding Clever Leaves Holdings or generate 140.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clever Leaves Holdings vs. City View Green
Performance |
| Timeline |
| Clever Leaves Holdings |
| City View Green |
Clever Leaves and City View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clever Leaves and City View
The main advantage of trading using opposite Clever Leaves and City View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clever Leaves position performs unexpectedly, City View 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 City View will offset losses from the drop in City View's long position.| Clever Leaves vs. Flora Growth Corp | Clever Leaves vs. AgriFORCE Growing Systems | Clever Leaves vs. Greenlane Holdings |
| City View vs. Benchmark Botanics | City View vs. Speakeasy Cannabis Club | City View vs. BC Craft Supply | City View vs. Ravenquest Biomed |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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