Correlation Between C21 Investments and Grown Rogue
Can any of the company-specific risk be diversified away by investing in both C21 Investments and Grown Rogue 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 C21 Investments and Grown Rogue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C21 Investments and Grown Rogue International, you can compare the effects of market volatilities on C21 Investments and Grown Rogue 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 C21 Investments with a short position of Grown Rogue. Check out your portfolio center. Please also check ongoing floating volatility patterns of C21 Investments and Grown Rogue.
Diversification Opportunities for C21 Investments and Grown Rogue
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between C21 and Grown is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding C21 Investments and Grown Rogue International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grown Rogue International and C21 Investments 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 C21 Investments are associated (or correlated) with Grown Rogue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grown Rogue International has no effect on the direction of C21 Investments i.e., C21 Investments and Grown Rogue go up and down completely randomly.
Pair Corralation between C21 Investments and Grown Rogue
Assuming the 90 days horizon C21 Investments is expected to generate 3.6 times less return on investment than Grown Rogue. In addition to that, C21 Investments is 1.12 times more volatile than Grown Rogue International. It trades about 0.02 of its total potential returns per unit of risk. Grown Rogue International is currently generating about 0.08 per unit of volatility. If you would invest 11.00 in Grown Rogue International on November 2, 2024 and sell it today you would earn a total of 48.00 from holding Grown Rogue International or generate 436.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
C21 Investments vs. Grown Rogue International
Performance |
| Timeline |
| C21 Investments |
| Grown Rogue International |
C21 Investments and Grown Rogue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C21 Investments and Grown Rogue
The main advantage of trading using opposite C21 Investments and Grown Rogue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C21 Investments position performs unexpectedly, Grown Rogue 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 Grown Rogue will offset losses from the drop in Grown Rogue's long position.| C21 Investments vs. Delta 9 Cannabis | C21 Investments vs. Halo Collective | C21 Investments vs. Willow Biosciences | C21 Investments vs. Entourage Health Corp |
| Grown Rogue vs. Goodness Growth Holdings | Grown Rogue vs. C21 Investments | Grown Rogue vs. Delta 9 Cannabis | Grown Rogue vs. 4Front Ventures Corp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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