Correlation Between BC Craft and Avicanna
Can any of the company-specific risk be diversified away by investing in both BC Craft and Avicanna 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 BC Craft and Avicanna into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BC Craft Supply and Avicanna, you can compare the effects of market volatilities on BC Craft and Avicanna 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 BC Craft with a short position of Avicanna. Check out your portfolio center. Please also check ongoing floating volatility patterns of BC Craft and Avicanna.
Diversification Opportunities for BC Craft and Avicanna
Pay attention - limited upside
The 3 months correlation between CRFTF and Avicanna is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BC Craft Supply and Avicanna in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avicanna and BC Craft 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 BC Craft Supply are associated (or correlated) with Avicanna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avicanna has no effect on the direction of BC Craft i.e., BC Craft and Avicanna go up and down completely randomly.
Pair Corralation between BC Craft and Avicanna
Assuming the 90 days horizon BC Craft Supply is expected to generate 6.44 times more return on investment than Avicanna. However, BC Craft is 6.44 times more volatile than Avicanna. It trades about 0.08 of its potential returns per unit of risk. Avicanna is currently generating about 0.04 per unit of risk. If you would invest 2.56 in BC Craft Supply on August 31, 2024 and sell it today you would lose (1.22) from holding BC Craft Supply or give up 47.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
BC Craft Supply vs. Avicanna
Performance |
| Timeline |
| BC Craft Supply |
| Avicanna |
BC Craft and Avicanna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BC Craft and Avicanna
The main advantage of trading using opposite BC Craft and Avicanna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BC Craft position performs unexpectedly, Avicanna 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 Avicanna will offset losses from the drop in Avicanna's long position.| BC Craft vs. Benchmark Botanics | BC Craft vs. Speakeasy Cannabis Club | BC Craft vs. City View Green | BC Craft vs. Ravenquest Biomed |
| Avicanna vs. Pharmacielo | Avicanna vs. Khiron Life Sciences | Avicanna vs. Flower One Holdings | Avicanna vs. Cansortium |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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