Correlation Between BC Craft and Green Cures
Can any of the company-specific risk be diversified away by investing in both BC Craft and Green Cures 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 Green Cures 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 Green Cures Botanical, you can compare the effects of market volatilities on BC Craft and Green Cures 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 Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of BC Craft and Green Cures.
Diversification Opportunities for BC Craft and Green Cures
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CRFTF and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BC Craft Supply and Green Cures Botanical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cures Botanical 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 Green Cures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cures Botanical has no effect on the direction of BC Craft i.e., BC Craft and Green Cures go up and down completely randomly.
Pair Corralation between BC Craft and Green Cures
Assuming the 90 days horizon BC Craft is expected to generate 3.36 times less return on investment than Green Cures. But when comparing it to its historical volatility, BC Craft Supply is 1.03 times less risky than Green Cures. It trades about 0.06 of its potential returns per unit of risk. Green Cures Botanical is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Green Cures Botanical on August 26, 2024 and sell it today you would earn a total of 0.00 from holding Green Cures Botanical or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BC Craft Supply vs. Green Cures Botanical
Performance |
| Timeline |
| BC Craft Supply |
| Green Cures Botanical |
BC Craft and Green Cures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BC Craft and Green Cures
The main advantage of trading using opposite BC Craft and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BC Craft position performs unexpectedly, Green Cures 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 Green Cures will offset losses from the drop in Green Cures' long position.| BC Craft vs. Green Cures Botanical | BC Craft vs. Galexxy Holdings | BC Craft vs. Indoor Harvest Corp | BC Craft vs. Speakeasy Cannabis Club |
| Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest Corp | Green Cures vs. Speakeasy Cannabis Club | Green Cures vs. Benchmark Botanics |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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