Correlation Between Filament Health and Green Cures
Can any of the company-specific risk be diversified away by investing in both Filament Health and Green Cures 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 Filament Health and Green Cures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filament Health Corp and Green Cures Botanical, you can compare the effects of market volatilities on Filament Health and Green Cures 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 Filament Health with a short position of Green Cures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filament Health and Green Cures.
Diversification Opportunities for Filament Health and Green Cures
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Filament and Green is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Filament Health Corp and Green Cures Botanical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cures Botanical and Filament 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 Filament Health Corp are associated (or correlated) with Green Cures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cures Botanical has no effect on the direction of Filament Health i.e., Filament Health and Green Cures go up and down completely randomly.
Pair Corralation between Filament Health and Green Cures
Assuming the 90 days horizon Filament Health Corp is expected to under-perform the Green Cures. But the otc stock apears to be less risky and, when comparing its historical volatility, Filament Health Corp is 3.53 times less risky than Green Cures. The otc stock trades about -0.13 of its potential returns per unit of risk. The Green Cures Botanical is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Green Cures Botanical on November 7, 2024 and sell it today you would earn a total of 0.01 from holding Green Cures Botanical or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Filament Health Corp vs. Green Cures Botanical
Performance |
| Timeline |
| Filament Health Corp |
| Green Cures Botanical |
Filament Health and Green Cures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Filament Health and Green Cures
The main advantage of trading using opposite Filament Health and Green Cures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filament Health position performs unexpectedly, Green Cures 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 Green Cures will offset losses from the drop in Green Cures' long position.| Filament Health vs. Delta 9 Cannabis | Filament Health vs. Body and Mind | Filament Health vs. CLS Holdings USA | Filament Health vs. Halo Collective |
| Green Cures vs. Cann American Corp | Green Cures vs. Rimrock Gold Corp | Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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