Correlation Between Halo Collective and Benchmark Botanics
Can any of the company-specific risk be diversified away by investing in both Halo Collective and Benchmark Botanics 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 Halo Collective and Benchmark Botanics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halo Collective and Benchmark Botanics, you can compare the effects of market volatilities on Halo Collective and Benchmark Botanics 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 Halo Collective with a short position of Benchmark Botanics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halo Collective and Benchmark Botanics.
Diversification Opportunities for Halo Collective and Benchmark Botanics
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Halo and Benchmark is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Halo Collective and Benchmark Botanics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Benchmark Botanics and Halo Collective 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 Halo Collective are associated (or correlated) with Benchmark Botanics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Benchmark Botanics has no effect on the direction of Halo Collective i.e., Halo Collective and Benchmark Botanics go up and down completely randomly.
Pair Corralation between Halo Collective and Benchmark Botanics
Assuming the 90 days horizon Halo Collective is expected to generate 2.47 times more return on investment than Benchmark Botanics. However, Halo Collective is 2.47 times more volatile than Benchmark Botanics. It trades about 0.06 of its potential returns per unit of risk. Benchmark Botanics is currently generating about 0.04 per unit of risk. If you would invest 2.35 in Halo Collective on November 27, 2024 and sell it today you would lose (2.34) from holding Halo Collective or give up 99.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halo Collective vs. Benchmark Botanics
Performance |
| Timeline |
| Halo Collective |
| Benchmark Botanics |
Halo Collective and Benchmark Botanics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halo Collective and Benchmark Botanics
The main advantage of trading using opposite Halo Collective and Benchmark Botanics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halo Collective position performs unexpectedly, Benchmark Botanics 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 Benchmark Botanics will offset losses from the drop in Benchmark Botanics' long position.| Halo Collective vs. C21 Investments | Halo Collective vs. Delta 9 Cannabis | Halo Collective vs. Willow Biosciences | Halo Collective vs. Decibel Cannabis |
| Benchmark Botanics vs. Speakeasy Cannabis Club | Benchmark Botanics vs. City View Green | Benchmark Botanics vs. BC Craft Supply | Benchmark Botanics 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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