Correlation Between Goodness Growth and City View
Can any of the company-specific risk be diversified away by investing in both Goodness Growth and City View 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 City View 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 City View Green, you can compare the effects of market volatilities on Goodness Growth and City View 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 City View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodness Growth and City View.
Diversification Opportunities for Goodness Growth and City View
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Goodness and City is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Goodness Growth Holdings and City View Green in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City View Green 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 City View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City View Green has no effect on the direction of Goodness Growth i.e., Goodness Growth and City View go up and down completely randomly.
Pair Corralation between Goodness Growth and City View
Assuming the 90 days horizon Goodness Growth Holdings is expected to under-perform the City View. But the otc stock apears to be less risky and, when comparing its historical volatility, Goodness Growth Holdings is 3.07 times less risky than City View. The otc stock trades about -0.09 of its potential returns per unit of risk. The City View Green is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.69 in City View Green on August 30, 2024 and sell it today you would earn a total of 0.66 from holding City View Green or generate 95.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodness Growth Holdings vs. City View Green
Performance |
| Timeline |
| Goodness Growth Holdings |
| City View Green |
Goodness Growth and City View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodness Growth and City View
The main advantage of trading using opposite Goodness Growth and City View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodness Growth position performs unexpectedly, City View 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 City View will offset losses from the drop in City View'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 |
| City View vs. Benchmark Botanics | City View vs. Speakeasy Cannabis Club | City View vs. BC Craft Supply | City View 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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