Correlation Between Pure Global and Ascend Wellness
Can any of the company-specific risk be diversified away by investing in both Pure Global and Ascend Wellness 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 Pure Global and Ascend Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pure Global Cannabis and Ascend Wellness Holdings, you can compare the effects of market volatilities on Pure Global and Ascend Wellness 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 Pure Global with a short position of Ascend Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pure Global and Ascend Wellness.
Diversification Opportunities for Pure Global and Ascend Wellness
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pure and Ascend is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pure Global Cannabis and Ascend Wellness Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascend Wellness Holdings and Pure Global 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 Pure Global Cannabis are associated (or correlated) with Ascend Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascend Wellness Holdings has no effect on the direction of Pure Global i.e., Pure Global and Ascend Wellness go up and down completely randomly.
Pair Corralation between Pure Global and Ascend Wellness
If you would invest 0.00 in Pure Global Cannabis on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Pure Global Cannabis or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pure Global Cannabis vs. Ascend Wellness Holdings
Performance |
| Timeline |
| Pure Global Cannabis |
| Ascend Wellness Holdings |
Pure Global and Ascend Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pure Global and Ascend Wellness
The main advantage of trading using opposite Pure Global and Ascend Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pure Global position performs unexpectedly, Ascend Wellness 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 Ascend Wellness will offset losses from the drop in Ascend Wellness' long position.| Pure Global vs. Aurora Cannabis | Pure Global vs. Canopy Growth Corp | Pure Global vs. Tilray Inc | Pure Global vs. Kali Inc |
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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