Correlation Between Goodness Growth and Bhang
Can any of the company-specific risk be diversified away by investing in both Goodness Growth and Bhang 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 Bhang 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 Bhang Inc, you can compare the effects of market volatilities on Goodness Growth and Bhang 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 Bhang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodness Growth and Bhang.
Diversification Opportunities for Goodness Growth and Bhang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goodness and Bhang is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goodness Growth Holdings and Bhang Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bhang Inc 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 Bhang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bhang Inc has no effect on the direction of Goodness Growth i.e., Goodness Growth and Bhang go up and down completely randomly.
Pair Corralation between Goodness Growth and Bhang
Assuming the 90 days horizon Goodness Growth is expected to generate 1.81 times less return on investment than Bhang. But when comparing it to its historical volatility, Goodness Growth Holdings is 2.42 times less risky than Bhang. It trades about 0.07 of its potential returns per unit of risk. Bhang Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1.46 in Bhang Inc on September 4, 2024 and sell it today you would lose (1.45) from holding Bhang Inc or give up 99.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.4% |
| Values | Daily Returns |
Goodness Growth Holdings vs. Bhang Inc
Performance |
| Timeline |
| Goodness Growth Holdings |
| Bhang Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Goodness Growth and Bhang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodness Growth and Bhang
The main advantage of trading using opposite Goodness Growth and Bhang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodness Growth position performs unexpectedly, Bhang 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 Bhang will offset losses from the drop in Bhang's long position.| Goodness Growth vs. Cann American Corp | Goodness Growth vs. Speakeasy Cannabis Club | Goodness Growth vs. Benchmark Botanics | Goodness Growth vs. Link Reservations |
| Bhang vs. Grown Rogue International | Bhang vs. Goodness Growth Holdings | Bhang vs. YourWay Cannabis Brands | Bhang vs. INC Research Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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