Correlation Between Grown Rogue and AYR Strategies
Can any of the company-specific risk be diversified away by investing in both Grown Rogue and AYR Strategies 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 Grown Rogue and AYR Strategies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grown Rogue International and AYR Strategies Class, you can compare the effects of market volatilities on Grown Rogue and AYR Strategies 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 Grown Rogue with a short position of AYR Strategies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grown Rogue and AYR Strategies.
Diversification Opportunities for Grown Rogue and AYR Strategies
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grown and AYR is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Grown Rogue International and AYR Strategies Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AYR Strategies Class and Grown Rogue 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 Grown Rogue International are associated (or correlated) with AYR Strategies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AYR Strategies Class has no effect on the direction of Grown Rogue i.e., Grown Rogue and AYR Strategies go up and down completely randomly.
Pair Corralation between Grown Rogue and AYR Strategies
Assuming the 90 days horizon Grown Rogue International is expected to under-perform the AYR Strategies. But the otc stock apears to be less risky and, when comparing its historical volatility, Grown Rogue International is 5.12 times less risky than AYR Strategies. The otc stock trades about -0.51 of its potential returns per unit of risk. The AYR Strategies Class is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 51.00 in AYR Strategies Class on November 3, 2024 and sell it today you would lose (3.00) from holding AYR Strategies Class or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grown Rogue International vs. AYR Strategies Class
Performance |
| Timeline |
| Grown Rogue International |
| AYR Strategies Class |
Grown Rogue and AYR Strategies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grown Rogue and AYR Strategies
The main advantage of trading using opposite Grown Rogue and AYR Strategies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grown Rogue position performs unexpectedly, AYR Strategies 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 AYR Strategies will offset losses from the drop in AYR Strategies' long position.| Grown Rogue vs. Goodness Growth Holdings | Grown Rogue vs. C21 Investments | Grown Rogue vs. Delta 9 Cannabis | Grown Rogue vs. 4Front Ventures Corp |
| AYR Strategies vs. Green Thumb Industries | AYR Strategies vs. Trulieve Cannabis Corp | AYR Strategies vs. Goodness Growth Holdings | AYR Strategies vs. Verano Holdings 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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