Correlation Between Goodness Growth and Grown Rogue
Can any of the company-specific risk be diversified away by investing in both Goodness Growth and Grown Rogue 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 Grown Rogue 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 Grown Rogue International, you can compare the effects of market volatilities on Goodness Growth and Grown Rogue 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 Grown Rogue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodness Growth and Grown Rogue.
Diversification Opportunities for Goodness Growth and Grown Rogue
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goodness and Grown is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Goodness Growth Holdings and Grown Rogue International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grown Rogue International 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 Grown Rogue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grown Rogue International has no effect on the direction of Goodness Growth i.e., Goodness Growth and Grown Rogue go up and down completely randomly.
Pair Corralation between Goodness Growth and Grown Rogue
Assuming the 90 days horizon Goodness Growth Holdings is expected to under-perform the Grown Rogue. In addition to that, Goodness Growth is 1.62 times more volatile than Grown Rogue International. It trades about -0.08 of its total potential returns per unit of risk. Grown Rogue International is currently generating about 0.04 per unit of volatility. If you would invest 65.00 in Grown Rogue International on August 25, 2024 and sell it today you would earn a total of 1.00 from holding Grown Rogue International or generate 1.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodness Growth Holdings vs. Grown Rogue International
Performance |
| Timeline |
| Goodness Growth Holdings |
| Grown Rogue International |
Goodness Growth and Grown Rogue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodness Growth and Grown Rogue
The main advantage of trading using opposite Goodness Growth and Grown Rogue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodness Growth position performs unexpectedly, Grown Rogue 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 Grown Rogue will offset losses from the drop in Grown Rogue's long position.| Goodness Growth vs. Green Cures Botanical | Goodness Growth vs. Galexxy Holdings | Goodness Growth vs. Indoor Harvest Corp | Goodness Growth vs. Speakeasy Cannabis Club |
| Grown Rogue vs. Goodness Growth Holdings | Grown Rogue vs. C21 Investments | Grown Rogue vs. Delta 9 Cannabis | Grown Rogue vs. 4Front Ventures 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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