Correlation Between City View and BC Craft
Can any of the company-specific risk be diversified away by investing in both City View and BC Craft 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 BC Craft 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 BC Craft Supply, you can compare the effects of market volatilities on City View and BC Craft 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 BC Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of City View and BC Craft.
Diversification Opportunities for City View and BC Craft
Modest diversification
The 3 months correlation between City and CRFTF is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding City View Green and BC Craft Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BC Craft Supply 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 BC Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BC Craft Supply has no effect on the direction of City View i.e., City View and BC Craft go up and down completely randomly.
Pair Corralation between City View and BC Craft
If you would invest 0.26 in City View Green on October 25, 2024 and sell it today you would earn a total of 0.52 from holding City View Green or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
City View Green vs. BC Craft Supply
Performance |
| Timeline |
| City View Green |
| BC Craft Supply |
City View and BC Craft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City View and BC Craft
The main advantage of trading using opposite City View and BC Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City View position performs unexpectedly, BC Craft 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 BC Craft will offset losses from the drop in BC Craft's long position.| City View vs. Benchmark Botanics | City View vs. Speakeasy Cannabis Club | City View vs. BC Craft Supply | City View vs. Ravenquest Biomed |
| BC Craft vs. Benchmark Botanics | BC Craft vs. Speakeasy Cannabis Club | BC Craft vs. City View Green | BC Craft vs. Ravenquest Biomed |
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..
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