Correlation Between Evolus and BC Bud
Can any of the company-specific risk be diversified away by investing in both Evolus and BC Bud 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 Evolus and BC Bud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolus Inc and The BC Bud, you can compare the effects of market volatilities on Evolus and BC Bud 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 Evolus with a short position of BC Bud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolus and BC Bud.
Diversification Opportunities for Evolus and BC Bud
Pay attention - limited upside
The 3 months correlation between Evolus and BCBCF is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Evolus Inc and The BC Bud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BC Bud and Evolus 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 Evolus Inc are associated (or correlated) with BC Bud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BC Bud has no effect on the direction of Evolus i.e., Evolus and BC Bud go up and down completely randomly.
Pair Corralation between Evolus and BC Bud
Given the investment horizon of 90 days Evolus is expected to generate 6.34 times less return on investment than BC Bud. But when comparing it to its historical volatility, Evolus Inc is 6.63 times less risky than BC Bud. It trades about 0.04 of its potential returns per unit of risk. The BC Bud is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 8.20 in The BC Bud on September 3, 2024 and sell it today you would lose (3.65) from holding The BC Bud or give up 44.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Evolus Inc vs. The BC Bud
Performance |
| Timeline |
| Evolus Inc |
| BC Bud |
Evolus and BC Bud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolus and BC Bud
The main advantage of trading using opposite Evolus and BC Bud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolus position performs unexpectedly, BC Bud 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 Bud will offset losses from the drop in BC Bud's long position.| Evolus vs. Collegium Pharmaceutical | Evolus vs. Phibro Animal Health | Evolus vs. ANI Pharmaceuticals | Evolus vs. Procaps Group SA |
| BC Bud vs. Green Cures Botanical | BC Bud vs. Cann American Corp | BC Bud vs. Indoor Harvest Corp | BC Bud vs. Genomma Lab Internacional |
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 CEOs Directory module to screen CEOs from public companies around the world.
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