Correlation Between Entourage Health and Benchmark Botanics
Can any of the company-specific risk be diversified away by investing in both Entourage Health and Benchmark Botanics 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 Entourage Health and Benchmark Botanics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entourage Health Corp and Benchmark Botanics, you can compare the effects of market volatilities on Entourage Health and Benchmark Botanics 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 Entourage Health with a short position of Benchmark Botanics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entourage Health and Benchmark Botanics.
Diversification Opportunities for Entourage Health and Benchmark Botanics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Entourage and Benchmark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Entourage Health Corp and Benchmark Botanics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Botanics and Entourage Health 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 Entourage Health Corp are associated (or correlated) with Benchmark Botanics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Botanics has no effect on the direction of Entourage Health i.e., Entourage Health and Benchmark Botanics go up and down completely randomly.
Pair Corralation between Entourage Health and Benchmark Botanics
If you would invest 0.89 in Entourage Health Corp on November 5, 2024 and sell it today you would lose (0.44) from holding Entourage Health Corp or give up 49.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Entourage Health Corp vs. Benchmark Botanics
Performance |
| Timeline |
| Entourage Health Corp |
| Benchmark Botanics |
Entourage Health and Benchmark Botanics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entourage Health and Benchmark Botanics
The main advantage of trading using opposite Entourage Health and Benchmark Botanics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entourage Health position performs unexpectedly, Benchmark Botanics 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 Benchmark Botanics will offset losses from the drop in Benchmark Botanics' long position.| Entourage Health vs. Benchmark Botanics | Entourage Health vs. Speakeasy Cannabis Club | Entourage Health vs. City View Green | Entourage Health vs. BC Craft Supply |
| Benchmark Botanics vs. Speakeasy Cannabis Club | Benchmark Botanics vs. City View Green | Benchmark Botanics vs. BC Craft Supply | Benchmark Botanics 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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