Correlation Between North Bud and Acreage Holdings
Can any of the company-specific risk be diversified away by investing in both North Bud and Acreage 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 North Bud and Acreage Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North Bud Farms and Acreage Holdings, you can compare the effects of market volatilities on North Bud and Acreage 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 North Bud with a short position of Acreage Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Bud and Acreage Holdings.
Diversification Opportunities for North Bud and Acreage Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between North and Acreage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding North Bud Farms and Acreage Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acreage Holdings and North Bud 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 North Bud Farms are associated (or correlated) with Acreage Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acreage Holdings has no effect on the direction of North Bud i.e., North Bud and Acreage Holdings go up and down completely randomly.
Pair Corralation between North Bud and Acreage Holdings
If you would invest 0.00 in North Bud Farms on September 1, 2024 and sell it today you would earn a total of 0.00 from holding North Bud Farms or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
North Bud Farms vs. Acreage Holdings
Performance |
| Timeline |
| North Bud Farms |
| Acreage Holdings |
North Bud and Acreage Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Bud and Acreage Holdings
The main advantage of trading using opposite North Bud and Acreage Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Bud position performs unexpectedly, Acreage 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 Acreage Holdings will offset losses from the drop in Acreage Holdings' long position.| North Bud vs. Holloman Energy Corp | North Bud vs. cbdMD Inc | North Bud vs. Evolus Inc | North Bud vs. CV Sciences |
| Acreage Holdings vs. AYR Strategies Class | Acreage Holdings vs. RIV Capital | Acreage Holdings vs. Verano Holdings Corp | Acreage Holdings vs. BZAM |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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