Correlation Between Green Thumb and CLS Holdings
Can any of the company-specific risk be diversified away by investing in both Green Thumb and CLS Holdings 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 Thumb and CLS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green Thumb Industries and CLS Holdings USA, you can compare the effects of market volatilities on Green Thumb and CLS Holdings 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 Thumb with a short position of CLS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Thumb and CLS Holdings.
Diversification Opportunities for Green Thumb and CLS Holdings
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Green and CLS is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Green Thumb Industries and CLS Holdings USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLS Holdings USA and Green Thumb 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 Thumb Industries are associated (or correlated) with CLS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLS Holdings USA has no effect on the direction of Green Thumb i.e., Green Thumb and CLS Holdings go up and down completely randomly.
Pair Corralation between Green Thumb and CLS Holdings
Assuming the 90 days horizon Green Thumb Industries is expected to under-perform the CLS Holdings. But the otc stock apears to be less risky and, when comparing its historical volatility, Green Thumb Industries is 1.99 times less risky than CLS Holdings. The otc stock trades about -0.09 of its potential returns per unit of risk. The CLS Holdings USA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5.00 in CLS Holdings USA on August 29, 2024 and sell it today you would earn a total of 0.00 from holding CLS Holdings USA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Green Thumb Industries vs. CLS Holdings USA
Performance |
| Timeline |
| Green Thumb Industries |
| CLS Holdings USA |
Green Thumb and CLS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Thumb and CLS Holdings
The main advantage of trading using opposite Green Thumb and CLS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Thumb position performs unexpectedly, CLS Holdings 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 CLS Holdings will offset losses from the drop in CLS Holdings' long position.| Green Thumb vs. Curaleaf Holdings | Green Thumb vs. Trulieve Cannabis Corp | Green Thumb vs. Cresco Labs | Green Thumb vs. GrowGeneration Corp |
| CLS Holdings vs. Benchmark Botanics | CLS Holdings vs. Speakeasy Cannabis Club | CLS Holdings vs. City View Green | CLS Holdings vs. BC Craft Supply |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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