Correlation Between Green Thumb and Speakeasy Cannabis
Can any of the company-specific risk be diversified away by investing in both Green Thumb and Speakeasy Cannabis 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 Speakeasy Cannabis 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 Speakeasy Cannabis Club, you can compare the effects of market volatilities on Green Thumb and Speakeasy Cannabis 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 Speakeasy Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green Thumb and Speakeasy Cannabis.
Diversification Opportunities for Green Thumb and Speakeasy Cannabis
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Green and Speakeasy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Green Thumb Industries and Speakeasy Cannabis Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Speakeasy Cannabis Club 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 Speakeasy Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Speakeasy Cannabis Club has no effect on the direction of Green Thumb i.e., Green Thumb and Speakeasy Cannabis go up and down completely randomly.
Pair Corralation between Green Thumb and Speakeasy Cannabis
If you would invest 770.00 in Green Thumb Industries on August 31, 2024 and sell it today you would earn a total of 180.00 from holding Green Thumb Industries or generate 23.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Green Thumb Industries vs. Speakeasy Cannabis Club
Performance |
| Timeline |
| Green Thumb Industries |
| Speakeasy Cannabis Club |
Green Thumb and Speakeasy Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Green Thumb and Speakeasy Cannabis
The main advantage of trading using opposite Green Thumb and Speakeasy Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green Thumb position performs unexpectedly, Speakeasy Cannabis 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 Speakeasy Cannabis will offset losses from the drop in Speakeasy Cannabis' long position.| Green Thumb vs. Holloman Energy Corp | Green Thumb vs. cbdMD Inc | Green Thumb vs. Evolus Inc | Green Thumb vs. CV Sciences |
| Speakeasy Cannabis vs. Benchmark Botanics | Speakeasy Cannabis vs. City View Green | Speakeasy Cannabis vs. BC Craft Supply | Speakeasy Cannabis vs. Ravenquest Biomed |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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