Correlation Between Green Cures and Ascend Wellness
Can any of the company-specific risk be diversified away by investing in both Green Cures 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 Green Cures and Ascend Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Cures Botanical and Ascend Wellness Holdings, you can compare the effects of market volatilities on Green Cures 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 Green Cures with a short position of Ascend Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Cures and Ascend Wellness.
Diversification Opportunities for Green Cures and Ascend Wellness
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Green and Ascend is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Green Cures Botanical 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 Green Cures 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 Green Cures Botanical 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 Green Cures i.e., Green Cures and Ascend Wellness go up and down completely randomly.
Pair Corralation between Green Cures and Ascend Wellness
Given the investment horizon of 90 days Green Cures Botanical is expected to generate 7.56 times more return on investment than Ascend Wellness. However, Green Cures is 7.56 times more volatile than Ascend Wellness Holdings. It trades about 0.14 of its potential returns per unit of risk. Ascend Wellness Holdings is currently generating about -0.49 per unit of risk. If you would invest 0.02 in Green Cures Botanical on August 26, 2024 and sell it today you would lose (0.01) from holding Green Cures Botanical or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Green Cures Botanical vs. Ascend Wellness Holdings
Performance |
| Timeline |
| Green Cures Botanical |
| Ascend Wellness Holdings |
Green Cures and Ascend Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Cures and Ascend Wellness
The main advantage of trading using opposite Green Cures and Ascend Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Cures 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.| Green Cures vs. Galexxy Holdings | Green Cures vs. Indoor Harvest Corp | Green Cures vs. Speakeasy Cannabis Club | Green Cures vs. Benchmark Botanics |
| Ascend Wellness vs. Green Cures Botanical | Ascend Wellness vs. Galexxy Holdings | Ascend Wellness vs. Indoor Harvest Corp | Ascend Wellness vs. Speakeasy Cannabis Club |
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 Stocks Directory module to find actively traded stocks across global markets.
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