Correlation Between City View and Acreage Holdings
Can any of the company-specific risk be diversified away by investing in both City View and Acreage 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 City View and Acreage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City View Green and Acreage Holdings, you can compare the effects of market volatilities on City View and Acreage 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 City View with a short position of Acreage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of City View and Acreage Holdings.
Diversification Opportunities for City View and Acreage Holdings
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between City and Acreage is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding City View Green and Acreage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acreage Holdings and City View 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 City View Green are associated (or correlated) with Acreage Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acreage Holdings has no effect on the direction of City View i.e., City View and Acreage Holdings go up and down completely randomly.
Pair Corralation between City View and Acreage Holdings
Assuming the 90 days horizon City View Green is expected to generate 1.08 times more return on investment than Acreage Holdings. However, City View is 1.08 times more volatile than Acreage Holdings. It trades about 0.21 of its potential returns per unit of risk. Acreage Holdings is currently generating about 0.0 per unit of risk. If you would invest 0.69 in City View Green on September 1, 2024 and sell it today you would earn a total of 0.66 from holding City View Green or generate 95.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
City View Green vs. Acreage Holdings
Performance |
| Timeline |
| City View Green |
| Acreage Holdings |
City View and Acreage Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City View and Acreage Holdings
The main advantage of trading using opposite City View and Acreage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City View position performs unexpectedly, Acreage 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 Acreage Holdings will offset losses from the drop in Acreage Holdings' long position.| City View vs. Benchmark Botanics | City View vs. Speakeasy Cannabis Club | City View vs. BC Craft Supply | City View vs. Ravenquest Biomed |
| Acreage Holdings vs. AYR Strategies Class | Acreage Holdings vs. RIV Capital | Acreage Holdings vs. Verano Holdings Corp | Acreage Holdings vs. BZAM |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |