Correlation Between C21 Investments and West Island
Can any of the company-specific risk be diversified away by investing in both C21 Investments and West Island 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 West Island into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C21 Investments and West Island Brands, you can compare the effects of market volatilities on C21 Investments and West Island 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 West Island. Check out your portfolio center. Please also check ongoing floating volatility patterns of C21 Investments and West Island.
Diversification Opportunities for C21 Investments and West Island
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between C21 and West is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding C21 Investments and West Island Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on West Island Brands 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 West Island. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of West Island Brands has no effect on the direction of C21 Investments i.e., C21 Investments and West Island go up and down completely randomly.
Pair Corralation between C21 Investments and West Island
If you would invest 0.35 in West Island Brands on August 26, 2024 and sell it today you would earn a total of 0.00 from holding West Island Brands 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 |
C21 Investments vs. West Island Brands
Performance |
| Timeline |
| C21 Investments |
| West Island Brands |
C21 Investments and West Island Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C21 Investments and West Island
The main advantage of trading using opposite C21 Investments and West Island positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C21 Investments position performs unexpectedly, West Island 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 West Island will offset losses from the drop in West Island's long position.| C21 Investments vs. Green Cures Botanical | C21 Investments vs. Galexxy Holdings | C21 Investments vs. Indoor Harvest Corp | C21 Investments vs. Speakeasy Cannabis Club |
| West Island vs. Canopy Growth Corp | West Island vs. Tilray Inc | West Island vs. Cronos Group | West Island vs. SNDL Inc |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |