Correlation Between Grown Rogue and West Island
Can any of the company-specific risk be diversified away by investing in both Grown Rogue and West Island 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 West Island 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 West Island Brands, you can compare the effects of market volatilities on Grown Rogue and West Island 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 West Island. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grown Rogue and West Island.
Diversification Opportunities for Grown Rogue and West Island
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grown and West is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grown Rogue International and West Island Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on West Island Brands 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 West Island. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of West Island Brands has no effect on the direction of Grown Rogue i.e., Grown Rogue and West Island go up and down completely randomly.
Pair Corralation between Grown Rogue and West Island
If you would invest 64.00 in Grown Rogue International on August 29, 2024 and sell it today you would earn a total of 3.00 from holding Grown Rogue International or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grown Rogue International vs. West Island Brands
Performance |
| Timeline |
| Grown Rogue International |
| West Island Brands |
Grown Rogue and West Island Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grown Rogue and West Island
The main advantage of trading using opposite Grown Rogue and West Island positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grown Rogue position performs unexpectedly, West Island 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 West Island will offset losses from the drop in West Island's 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 |
| West Island vs. Canopy Growth Corp | West Island vs. Tilray Inc | West Island vs. Cronos Group | West Island vs. SNDL Inc |
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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