Correlation Between Goodness Growth and BC Craft
Can any of the company-specific risk be diversified away by investing in both Goodness Growth and BC Craft 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 BC Craft 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 BC Craft Supply, you can compare the effects of market volatilities on Goodness Growth and BC Craft 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 BC Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodness Growth and BC Craft.
Diversification Opportunities for Goodness Growth and BC Craft
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goodness and CRFTF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Goodness Growth Holdings and BC Craft Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BC Craft Supply 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 BC Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BC Craft Supply has no effect on the direction of Goodness Growth i.e., Goodness Growth and BC Craft go up and down completely randomly.
Pair Corralation between Goodness Growth and BC Craft
Assuming the 90 days horizon Goodness Growth Holdings is expected to under-perform the BC Craft. But the otc stock apears to be less risky and, when comparing its historical volatility, Goodness Growth Holdings is 4.5 times less risky than BC Craft. The otc stock trades about -0.03 of its potential returns per unit of risk. The BC Craft Supply is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2.65 in BC Craft Supply on September 1, 2024 and sell it today you would lose (1.31) from holding BC Craft Supply or give up 49.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodness Growth Holdings vs. BC Craft Supply
Performance |
| Timeline |
| Goodness Growth Holdings |
| BC Craft Supply |
Goodness Growth and BC Craft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodness Growth and BC Craft
The main advantage of trading using opposite Goodness Growth and BC Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodness Growth position performs unexpectedly, BC Craft 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 Craft will offset losses from the drop in BC Craft's 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 |
| BC Craft vs. Holloman Energy Corp | BC Craft vs. cbdMD Inc | BC Craft vs. Evolus Inc | BC Craft vs. CV Sciences |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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