Correlation Between Jushi Holdings and Columbia Care
Can any of the company-specific risk be diversified away by investing in both Jushi Holdings and Columbia Care 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 Jushi Holdings and Columbia Care into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jushi Holdings and Columbia Care, you can compare the effects of market volatilities on Jushi Holdings and Columbia Care 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 Jushi Holdings with a short position of Columbia Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jushi Holdings and Columbia Care.
Diversification Opportunities for Jushi Holdings and Columbia Care
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jushi and Columbia is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Jushi Holdings and Columbia Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Care and Jushi Holdings 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 Jushi Holdings are associated (or correlated) with Columbia Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Care has no effect on the direction of Jushi Holdings i.e., Jushi Holdings and Columbia Care go up and down completely randomly.
Pair Corralation between Jushi Holdings and Columbia Care
If you would invest 46.00 in Columbia Care on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Columbia Care or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Jushi Holdings vs. Columbia Care
Performance |
| Timeline |
| Jushi Holdings |
| Columbia Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jushi Holdings and Columbia Care Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jushi Holdings and Columbia Care
The main advantage of trading using opposite Jushi Holdings and Columbia Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jushi Holdings position performs unexpectedly, Columbia Care 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 Columbia Care will offset losses from the drop in Columbia Care's long position.| Jushi Holdings vs. Verano Holdings Corp | Jushi Holdings vs. Ascend Wellness Holdings | Jushi Holdings vs. Green Thumb Industries | Jushi Holdings vs. AYR Strategies Class |
| Columbia Care vs. Green Thumb Industries | Columbia Care vs. AYR Strategies Class | Columbia Care vs. Trulieve Cannabis Corp | Columbia Care vs. Goodness Growth Holdings |
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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