Correlation Between BC Craft and Mountain High
Can any of the company-specific risk be diversified away by investing in both BC Craft and Mountain High 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 Mountain High 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 Mountain High Acquisitions, you can compare the effects of market volatilities on BC Craft and Mountain High 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 Mountain High. Check out your portfolio center. Please also check ongoing floating volatility patterns of BC Craft and Mountain High.
Diversification Opportunities for BC Craft and Mountain High
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CRFTF and Mountain is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding BC Craft Supply and Mountain High Acquisitions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain High Acquis 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 Mountain High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain High Acquis has no effect on the direction of BC Craft i.e., BC Craft and Mountain High go up and down completely randomly.
Pair Corralation between BC Craft and Mountain High
If you would invest 11.00 in BC Craft Supply on August 30, 2024 and sell it today you would lose (9.66) from holding BC Craft Supply or give up 87.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 13.45% |
| Values | Daily Returns |
BC Craft Supply vs. Mountain High Acquisitions
Performance |
| Timeline |
| BC Craft Supply |
| Mountain High Acquis |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BC Craft and Mountain High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BC Craft and Mountain High
The main advantage of trading using opposite BC Craft and Mountain High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BC Craft position performs unexpectedly, Mountain High 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 Mountain High will offset losses from the drop in Mountain High's long position.| BC Craft vs. Green Cures Botanical | BC Craft vs. Cann American Corp | BC Craft vs. Rimrock Gold Corp | BC Craft vs. Galexxy Holdings |
| Mountain High vs. Benchmark Botanics | Mountain High vs. Speakeasy Cannabis Club | Mountain High vs. City View Green | Mountain High 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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