Correlation Between Grown Rogue and C21 Investments
Can any of the company-specific risk be diversified away by investing in both Grown Rogue and C21 Investments 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 C21 Investments 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 C21 Investments, you can compare the effects of market volatilities on Grown Rogue and C21 Investments 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 C21 Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grown Rogue and C21 Investments.
Diversification Opportunities for Grown Rogue and C21 Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grown and C21 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grown Rogue International and C21 Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C21 Investments 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 C21 Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C21 Investments has no effect on the direction of Grown Rogue i.e., Grown Rogue and C21 Investments go up and down completely randomly.
Pair Corralation between Grown Rogue and C21 Investments
Assuming the 90 days horizon Grown Rogue International is expected to generate 0.43 times more return on investment than C21 Investments. However, Grown Rogue International is 2.35 times less risky than C21 Investments. It trades about -0.07 of its potential returns per unit of risk. C21 Investments is currently generating about -0.06 per unit of risk. If you would invest 71.00 in Grown Rogue International on August 26, 2024 and sell it today you would lose (5.00) from holding Grown Rogue International or give up 7.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grown Rogue International vs. C21 Investments
Performance |
| Timeline |
| Grown Rogue International |
| C21 Investments |
Grown Rogue and C21 Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grown Rogue and C21 Investments
The main advantage of trading using opposite Grown Rogue and C21 Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grown Rogue position performs unexpectedly, C21 Investments 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 C21 Investments will offset losses from the drop in C21 Investments' 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 |
| C21 Investments vs. Green Cures Botanical | C21 Investments vs. Galexxy Holdings | C21 Investments vs. Indoor Harvest Corp | C21 Investments 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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