Correlation Between Green Thumb and Amplify Seymour
Can any of the company-specific risk be diversified away by investing in both Green Thumb and Amplify Seymour 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 Amplify Seymour 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 Amplify Seymour Cannabis, you can compare the effects of market volatilities on Green Thumb and Amplify Seymour 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 Amplify Seymour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Thumb and Amplify Seymour.
Diversification Opportunities for Green Thumb and Amplify Seymour
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Green and Amplify is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Green Thumb Industries and Amplify Seymour Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Seymour Cannabis 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 Amplify Seymour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Seymour Cannabis has no effect on the direction of Green Thumb i.e., Green Thumb and Amplify Seymour go up and down completely randomly.
Pair Corralation between Green Thumb and Amplify Seymour
Assuming the 90 days horizon Green Thumb Industries is expected to generate 1.13 times more return on investment than Amplify Seymour. However, Green Thumb is 1.13 times more volatile than Amplify Seymour Cannabis. It trades about -0.09 of its potential returns per unit of risk. Amplify Seymour Cannabis is currently generating about -0.25 per unit of risk. If you would invest 1,143 in Green Thumb Industries on August 24, 2024 and sell it today you would lose (183.00) from holding Green Thumb Industries or give up 16.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Green Thumb Industries vs. Amplify Seymour Cannabis
Performance |
| Timeline |
| Green Thumb Industries |
| Amplify Seymour Cannabis |
Green Thumb and Amplify Seymour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Thumb and Amplify Seymour
The main advantage of trading using opposite Green Thumb and Amplify Seymour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Thumb position performs unexpectedly, Amplify Seymour 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 Amplify Seymour will offset losses from the drop in Amplify Seymour's long position.| Green Thumb vs. Curaleaf Holdings | Green Thumb vs. Trulieve Cannabis Corp | Green Thumb vs. Cresco Labs | Green Thumb vs. GrowGeneration Corp |
| Amplify Seymour vs. SPDR Kensho New | Amplify Seymour vs. Global X FinTech | Amplify Seymour vs. iShares Genomics Immunology | Amplify Seymour vs. Aquagold International |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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