Correlation Between BC Craft and CLS Holdings
Can any of the company-specific risk be diversified away by investing in both BC Craft and CLS Holdings 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 CLS Holdings 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 CLS Holdings USA, you can compare the effects of market volatilities on BC Craft and CLS Holdings 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 CLS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of BC Craft and CLS Holdings.
Diversification Opportunities for BC Craft and CLS Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CRFTF and CLS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BC Craft Supply and CLS Holdings USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLS Holdings USA 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 CLS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLS Holdings USA has no effect on the direction of BC Craft i.e., BC Craft and CLS Holdings go up and down completely randomly.
Pair Corralation between BC Craft and CLS Holdings
Assuming the 90 days horizon BC Craft Supply is expected to generate 4.23 times more return on investment than CLS Holdings. However, BC Craft is 4.23 times more volatile than CLS Holdings USA. It trades about 0.06 of its potential returns per unit of risk. CLS Holdings USA is currently generating about 0.05 per unit of risk. If you would invest 3.41 in BC Craft Supply on September 1, 2024 and sell it today you would lose (2.07) from holding BC Craft Supply or give up 60.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.63% |
| Values | Daily Returns |
BC Craft Supply vs. CLS Holdings USA
Performance |
| Timeline |
| BC Craft Supply |
| CLS Holdings USA |
BC Craft and CLS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BC Craft and CLS Holdings
The main advantage of trading using opposite BC Craft and CLS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BC Craft position performs unexpectedly, CLS Holdings 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 CLS Holdings will offset losses from the drop in CLS Holdings' long position.| BC Craft vs. Holloman Energy Corp | BC Craft vs. cbdMD Inc | BC Craft vs. Evolus Inc | BC Craft vs. CV Sciences |
| CLS Holdings vs. Benchmark Botanics | CLS Holdings vs. Speakeasy Cannabis Club | CLS Holdings vs. City View Green | CLS Holdings vs. BC Craft Supply |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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