Correlation Between Goodness Growth and Ascend Wellness
Can any of the company-specific risk be diversified away by investing in both Goodness Growth and Ascend Wellness 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 Goodness Growth and Ascend Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goodness Growth Holdings and Ascend Wellness Holdings, you can compare the effects of market volatilities on Goodness Growth and Ascend Wellness 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 Goodness Growth with a short position of Ascend Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodness Growth and Ascend Wellness.
Diversification Opportunities for Goodness Growth and Ascend Wellness
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Goodness and Ascend is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Goodness Growth Holdings and Ascend Wellness Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascend Wellness Holdings and Goodness Growth 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 Goodness Growth Holdings are associated (or correlated) with Ascend Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascend Wellness Holdings has no effect on the direction of Goodness Growth i.e., Goodness Growth and Ascend Wellness go up and down completely randomly.
Pair Corralation between Goodness Growth and Ascend Wellness
Assuming the 90 days horizon Goodness Growth Holdings is expected to generate 1.02 times more return on investment than Ascend Wellness. However, Goodness Growth is 1.02 times more volatile than Ascend Wellness Holdings. It trades about -0.13 of its potential returns per unit of risk. Ascend Wellness Holdings is currently generating about -0.52 per unit of risk. If you would invest 45.00 in Goodness Growth Holdings on August 28, 2024 and sell it today you would lose (10.00) from holding Goodness Growth Holdings or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodness Growth Holdings vs. Ascend Wellness Holdings
Performance |
| Timeline |
| Goodness Growth Holdings |
| Ascend Wellness Holdings |
Goodness Growth and Ascend Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodness Growth and Ascend Wellness
The main advantage of trading using opposite Goodness Growth and Ascend Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodness Growth position performs unexpectedly, Ascend Wellness 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 Ascend Wellness will offset losses from the drop in Ascend Wellness' long position.| Goodness Growth vs. Verano Holdings Corp | Goodness Growth vs. Lowell Farms | Goodness Growth vs. Ascend Wellness Holdings | Goodness Growth vs. 4Front Ventures Corp |
| Ascend Wellness vs. Verano Holdings Corp | Ascend Wellness vs. Green Thumb Industries | Ascend Wellness vs. AYR Strategies Class | Ascend Wellness vs. Trulieve Cannabis 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |